| There are a lot of reasons why you would do well to take professional indemnity insurance. It is quite a litigious world and therefore freelancers, consultants and contractors need to watch their back as they may never know what comes back to hit them. A lot of professionals are under a constant tension and pressure to get their job done. However, the rush of deadlines could lead one to do a job incorrectly or improperly. In fact, one would be lucky to get away with such completion of a task. For all those who are not so lucky, the repercussions could be quite severe.
Therefore for all such professionals the professional indemnity insurance comes as a saviour. This is because a task completed could have varied impact on many people. Negligence whilst on duty could lead to one kind of loss. Breach of confidentiality could lead to another kind of problem where a company could lose money or reputation or both and could hold you responsible for the aftermath of that. Similarly, loss of data or important information for which you are responsible could put a company in a lot of problem. From faulty design and architecture of a building to mishandling of important and confidential information, from plagiarism of creative content to dishonesty and malpractice there are a lot of things for which employees can be charged. They could be guilty in some case and might not be in other cases.
Whatever is the scenario the one thing that stands clear is that the defence costs and the claims and compensation payments could be huge. In fact it could lead people to lose their life’s savings or their entire career. That is where professional indemnity insurance comes into picture. The PI insurance will provide coverage for all the likely eventualities and the amount would depend on the work you are doing and its potential impact. It could include coverage for various kinds of claims with special features tailor made for your profession. The policy will also provide legal costs when you need someone to defend you against a client who alleges on various levels. The insurance amount could vary across a large range depending upon what you may need in the eventuality of a grave mistake, negligence or sheer loss because of unforeseen situations. Most importantly the insurance will offer peace of mind. |
