subject: Professional Indemnity Insurance Provide Cover Aginst Financial Liabilities [print this page] Pi insurance is an excellent way by which you can guard yourself from financial liabilities on the professional front. Professional indemnity insurance provides you with financial coverage when a dissatisfied client files a lawsuit against you on grounds of either professional incompetency or some damage done on your part to the interests of the client. Lawsuits are very expensive and could completely drain your resources. There are many benefits associated with professional indemnity insurance which you need to keep in mind when considering the idea of whether or not you should purchase a professional indemnity policy for yourself.
Tips for Purchasing a Good Pi Insurance Policy
Look for a Policy with a Low Premium
The first thing that you have to look for when considering the idea of purchasing a pi insurance policy is to opt for one where the premium is low. If the premium for the insurance policy is low then it will be easier for you to renew the policy over and over again.
Opt for a High Coverage Amount
You should also opt for a indemnity insurance policy where the coverage amount is substantially high. If a lawsuit is filed against you the expenses that you might have to occur could be exorbitant. Hence you should ideally opt for a policy that entails a high coverage amount. The average amount with regard to coverage should at least be five hundred thousand pounds.
Benefits of Professional Indemnity Insurance
Looks into Legal Matters
One of the most important benefits associated with professional indemnity insurance is the fact that the insurance company undertakes the resolving of a case on your behalf. For instance, if your client feels unsatisfied with the services that you provide him or her and files a lawsuit against you demanding compensation, the insurance company will look into the legal aspects of the matter. It will examine the claims made by the client and will take a decision as to whether these claims are at all legitimate in the first place. You do not have to involve yourself in the legal battle at all.
Coverage Amount Very High
The coverage amount that is generally provided by professional indemnity companies is quite high. The standard amount is about five hundred thousand pounds which is actually a lot more that what a lawsuit would cost. You will be covered against the most expensive of lawsuits when you are the holder of a professional indemnity insurance policy.
Thus, there are quite a few benefits associated with indemnity insurance that you ought to keep in mind when wondering about whether to purchase such a policy or not.
by: Insurance
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