Undoubtedly, when you do your job, you are doing everything possible to be close to the perfection and try to exercise due diligence at the highest level. But what happens if you make mistakes? These errors can be costly to your clients, and when it comes to vital interests, you can face your clients on the court. And here, where a Professional Indemnity Insurance (PI) is activated.
PI is an insurance that covers businesses that provide advice or professional services to clients. It can pay compensation claims and legal costs in the event that there was a negligence in your work. However, although this falls under "negligence", you must also take into account the policy regarding dishonesty, defamation of intellectual property, loss of documents, etc.
An example of circumstances in which PI can be used is an e-mail sent to the wrong person and violating the privacy-confidentiality policy. But, not always the judicial way is beneficial for the plaintiff. Although the general answer to the question, if you need this insurance or not, is yes, you need to consider many of the elements and parameters of the business, before deciding on which type of insurance is more suitable for your business, since PI varies depending on the industry (Marketing, IT, Architecture ...).
In any case, having PI, you emphasize the professionalism and due diligence of your business. So this is not just insurance. We could say that this is also a kind of asset.
The types of insurance have no restrictions. For your own needs you can also find the following:
Business buildings insurance Business contents insurance Business equipment insurance Business interruption insurance Business legal protection insurance Contract works insurance Stock insurance Tool insurance ...