Protect Your Business From Lawsuits With THIS Insurance Type!

If you make an accidental mistake while providing a service and you get sued for it, this insurance will act as a safeguard. It is an industry-standard for consultants, accountants, financial service firms, engineers, architects, doctors, charities, and many more.

With Professional Indemnity Insurance, your business is protected from a wide range of business lawsuits — from lawsuits related to negligence, errors and omissions, defamation, IP infringement, and much more.

What will this insurance type pay for? 1. Lawyer fees to defend your company from claims of professional negligence 2. Legal damages awarded due to such lawsuits (this covers damages and settlements)

Professional indemnity insurance is very important if you operate any kind of professional service business. If you make an error while serving clients, or your service causes damage or injury, your clients can certainly file civil lawsuits against you for compensation.

Unless you have massive amounts of cash to pay for lawyer fees and legal damages, it is very beneficial to have a Professional Indemnity policy that will protect you from expensive litigation.

What does it cover?

• Errors & Omissions / Negligence / Malpractice: Coverage for your mistakes while performing services for clients.

• Defamation: Coverage if you are found guilty of libel or slander.

• Retroactive Claims: Coverage for mistakes that occurred before you bought Professional Indemnity Insurance (even if your claimable event occurred several years ago, as long as you file a claim while your current policy is active, you’ll be protected. You must have held uninterrupted Professional Indemnity coverage for this retroactive protection to apply).

• Subcontractor Errors: Coverage for subcontractor mistakes that harm your clients (errors resulting in building faults, construction delays, etc).

• IP/Patent Infringement: Coverage for accidental violation of Intellectual Property (IP) belonging to someone else.

Do I need Professional Indemnity Insurance? As long as you provide any kind of professional advice/service to clients, it is a need to have Professional Indemnity Insurance in order to protect your business. For a small annual fee, you are able to protect yourself from lawsuits that could financially affect you and your business. It is standard practice for these industries to have Professional Indemnity coverage:

• Accountants

• Consultants

• Healthcare Services

• Legal Services

• Financial Services (Financial Advisors, Investment Firms, Brokerages)

• Architects

• Surveyors

• Logistics Firms

• PR/Marketing Firms

• Construction Firms

• Spas and Massage Therapists

• Condominium MCSTs

How much Professional Indemnity Insurance do I need? You should evaluate these factors to decide:

• Regulatory/Professional Association Requirements: Some industries have legal requirements for how much Professional Indemnity Insurance you need to have.

• Worst-Case Scenario: Think about the size of the contracts you accept. What is the maximum amount you could be sued for? And how much would it cost for lawyer’s fees?

• Number of Employees: The more employees you have, the more professional liability you are exposed to.

Some types of businesses have more complex liability requirements (e.g. financial institutions, engineering services), requiring higher amounts of coverage. A good starting point for businesses in such sectors is $500,000 to $1 million, as a bare minimum.

The coverage terms of each Professional Indemnity policy can be crafted to suit your unique needs. Contact us to start crafting your own custom policy!