subject: Advantages Of Professional Indemnity Insurance U.k [print this page] Professional indemnity insurance or simply PI insurance is a policy that insures a person against his/her skills. It is almost a compulsion for any person or entity that is in a position of rendering professional advice or consultation services to be covered under PI insurance scheme. The service sector in U.K is its lifeline and hence here comes the importance of professional indemnity insurance. In U.K all professionals like solicitors, accountants, legal consultants, managers and financial advisors, doctors, engineers and also many other firms are asked to take the beneficial coverage of professional indemnity insurance.
In recent years U.K has witnessed a tremendous dependence on its service sector which has also indicated the importance of PI insurance industry there. There are many insurance organizations as well as individual brokers who provide specialized services in professional indemnity insurance. Such services have become much accessible at present through introduction of online services of Pi insurance quotes and buying of policies. It is advised to carefully judge the business requirements and select a suitable policy keeping in mind the clause of the limit of indemnity and the time span of insurance.
Usually it is the basic duty of a business to ensure the welfare of their customers. If due to negligence, breach of contract or any misleading professional advice on the part of the company cause the client any financial, physical or social loss, the client has all rights to take legal action and sue the company. Under such conditions a company against which charges are brought by the client is under the obligation to meet compensation expenses. Thus, a PI insurance policy provides risk coverage and takes care of all financial and legal costs related.
Though being covered under PI is beneficial for a company in driving away financial risks, huge claims charged by clients is decretory for the companys goodwill. Thus, protection of customers interest should be of prime importance.
Ideally it is the responsibility of a business to always perform their duties towards their customers/clients, however in circumstances when the client faces any financial loss due to the professional advice provided by the company or any negligence of their duty towards the client- the client may file a suit against the business entity. Here comes the need of an Indemnity Insurance which provides coverage for all the legal and related costs that arise out of the clients claims against the company.
by: Insurance
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