Professional Indemnity Insurance Uk Is A Must Have For Professionals
Professional indemnity insurance is quite a complicated subject
, but it can be made simpler and comprehensible if you understand the nuances associated with the policy. First and foremost, one needs to understand the coverage extended by the policy. This insurance policy is ideal for people who provide professional advice to customers, and clients in turn take decisions based on your advice. This means that your advice has to be the right one, or else the client has a right to sue you. A simple example of the same is a stock broker. People who want to have a well spread out portfolio take the advice of stock brokers. You are required to give correct advice as regards the shares and stocks to your client.
If your client incurs a loss in the process due to your carelessness, then they have every right to put forth a compensation claim. Accountants also need to purchase professional indemnity insurance UK so that they are secured if at all there is a problem with your client. If an accountant makes a mistake in filing taxes, then the client has every right to file suit. Carelessness on your part could lead to the client filing a case claiming compensation.
This insurance provides coverage for legal expenses, if any. It is advised that you read the fine print of the insurance policy well before signing on the agreement. Check out whether the legal costs and fees would be covered under the policy. Many businesses tend to ignore this insurance policy, as the cost of this insurance is quite high. It takes at least three months to obtain this policy. It is difficult to identify whether your business is getting a good deal or not, hence you need to take the advice of an insurance agent.
When it comes to giving advice on shares and stocks, many times the advice may not be correct. Hence, you need to be protected against such problems. It is difficult to predict whether the prices of the stocks are going to go up or not. This form of insurance would help you to get the requisite protection.
It is better to have this policy rather than remain unprotected and face problems at a later date. The client expects professional advice and believes that your professional judgement is going to benefit them. Moreover, any mistakes or errors with regards to the advice can prove to be costly to the client.
Professional indemnity insurance may not extend sufficient insurance coverage to individuals engaged in the provision of accountancy-related services. This can be covered under public liability insurance, which provides protection against claims from public members and clients. An accountancy firm may wish to consider general contents insurance, office contents insurance, premises insurance and so on.
The options are plenty and they can also be tailor-made to suit the business' requirements. For more guidance and advice, you may want to seek the professional help of specialised insurance intermediaries regarding professional indemnity insurance.
by: Lawrence White
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