Getting Professional Indemnity Insurance is a wise move. With the responsibility of other people’s businesses in your hands it’s up to you to ensure you provide the highest level of service to your customers. Your advice and direction is critical to the success of your clients, but in business; mistakes happen. Unforeseen circumstances, a mistake on a project or piece of work you have consulted on could result in an unsatisfied customer making a claim against you for financial losses.
Professional Indemnity insurance for business consultants and Advisors offers cover against financial loss suffered to your customers’ as a result of advice you’ve given, design or any consultation provided by you. In essence, Professional Indemnity insurance protects you against claims that result from work you have completed for a client while carrying out a service.
Your client could make a claim against you for a number of reasons. For example, If you’re a marketing consultant that advises your client to spend money on advertising for a guaranteed monetary return, and your customer doesn’t see any return from their advertising investment and claims against you for negligent advice. Alternatively, you might be consulting on a project and accidentally lose sensitive data or documents, your customer could claim for losses incurred.
A Professional Indemnity policy could protect you from a number of different risks; to read more about this please visit our policy information page, here.
Professional Indemnity insurance may or may not be compulsory as part of your industry so always check with your industries rules and regulations. Be aware that even if you are not required by law to hold a Professional Indemnity policy you can still be held liable for a client’s financial loss if you have charged them for advice, design or consultation work.