So you have just started a business and everything is going smoothly. You have your focus, your passion, your motivation, and all your finances are in line. You are off to a great start, feeling confident about what is to come. Everything is in place, apart from one thing — insurance. Don’t let this factor slip past your mind, because it is just as important as every other part of part of running and maintaining a smooth sailing business.
Choosing the right insurance for your company is essential and not something you should brush past or rush into, which is why the team at Watson Laurie are always writing up fresh advice to help you through it. Today’s article will focus on professional indemnity insurance (PI); a type of insurance which should be seen as a priority for providers of professional services.
As a professional company, you want to believe that nothing will go wrong, no mistakes will be made that may affect your clients, but the fact of the matter is that this is always going to be a possibility. The concept of professional indemnity insurance is simple; it will protect your company against compensation that could be claimed from clients who have received financial loss due to a mistake made on your part. It is also important to remember that clients who are dissatisfied can claim compensation even if you have not done anything wrong, and this is another reason why PI insurance can help you.
Depending on your business, you may or may not be legally obliged to take out professional indemnity insurance, but as experts in this field, we would advise all professional businesses to invest some time into understanding how your company will benefit from taking this kind of insurance out, and this article is a great start so you are already half way there.
Professionals that are sure to benefit from this type of insurance include accountants, financial advisors, architects, IT consultants, journalists, business consultants and engineers. Accountants and financial advisors are unable to operate unless they are covered by PI insurance and there are some other professionals who are required to have this insurance as a part of trade association membership.
By not following the advice to take out PI, you are not only putting your business and employees jobs at risk, but you may also miss out on opportunities with potential clients as the majority of businesses will expect you to be insured, and it is a definite possibility that you will not be taken seriously if you do not take your insurance seriously.
Choosing the right insurance for you is one part, what follows is choosing the right insurance broker for you. You need a broker who understands the risks as well as is on hand to provide you with the necessary advice to correctly insure a client against such claims. At Watson Laurie, as an independent insurance company, we tailor every one of our insurance policies for each individual business, focusing on Architects, Building Services Engineers, Surveyors, Civil and Structural Engineers, Project Managers, Quantity Surveyors, Design and Build Contractors as well as all those mentioned above.
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