subject: Steps to Get the Best Professional Indemnity Insurance [print this page] Steps to Get the Best Professional Indemnity Insurance
Professional Indemnity Insurance protects businesses against risks like, 'loss of professional documents or intellectual property, dishonesty and defamation, and negligence'.
Professional Indemnity Insurance does not only help in dealing with the financial cripples one faces, but it also protects the professional reputation from being distorted. Essentially, the motive of Professional Indemnity Insurance is to safeguard professionals by covering claims made by any of your clients against you, a case that might have occurred as a result of your negligent act, error or omission.
Therefore, as per an old saying- 'it is better to be safe than being sorry', Professional Indemnity Insurance as compensation claims should be taken out to protect your business.
The first step to get yourself covered under Professional Indemnity Insurance is, to collect information on the areas an insurer considers while deciding a premium of insurance coverage. These can be:
Your income or the income of the firm in total
Nature of the business activities
Limit of the indemnity or level of excess
Risk involved in the business
The second, and important step is to make an impressive application to get the best coverage. To make it impressive and to highlight the strengths, you can add below explained points in your application form:
A complete disclosure of all facts related to the case.
Comprehensive and organized information.
Consider risk involvement and risk management.
Before providing an insurance coverage, the insurer deeply scrutinizes the profile of service provider. They take every small thing in consideration like the type of advices being given to the client, the products that had been sold, and issues related to the management that must have raised during the course of offered professional services.
The insurers are mainly concerned about the issues that may not have been highlighted by you but might be of significant value to their decision.
So, be careful while buying insurance. Do not neglect the importance of buying Professional Indemnity insurance from an authority insurer, as it is important to safeguard your business against compensation litigations.
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