Many people ask, “why do I need professional indemnity insurance”? Well, Professional indemnity insurance protects your business’ reputation. In fact, it does this, well before a dispute reaches court. In this way, it is providing legal and reputational defence costs. In fact, there are many advantages in having PI insurance. However, in our experience, the three key benefits are listed below.
In the event of a Professional Indemnity claim would you know what legal firm to appoint? Further, did you know that a Professional Indemnity insurer gives you access to some of Australia’s top legal firms? In that way, you can rest easy, knowing that the appointment of a lawyer to defend you is all handled by the insurer. You see, Insurance companies have a panel of legal firms. They are selected for their expertise in handling professional indemnity claims. In fact, we regularly see claims where the legal costs are just as much as the amount of compensation being claimed.
That’s why it is important to check your PI insurance. It’s so you can make sure the legal costs are in addition to the limit of indemnity. Often, because these legal firms specialise in PI insurance claims, they may be able to resolve the matter quicker that what otherwise could be achieved. However, without insurance you may not be able to afford these specialist firms. That’s why it is important to have professional indemnity insurance.
Some professional indemnity insurance policies extend to include cover for Public Relations Expenses. This is to restore your reputation. In particular, coverage for Public Relations Expenses is important. This is because it covers costs for a public relations firm. They are engaged to limit adverse effects or negative publicity from a claim. Better still, many Professional Indemnity insurers have a generous Public Relation Expenses limit of $50,000.
A claim against you for alleged unprofessional advice, failure to exercise required skill, or breach of professional duty, can be costly. That said, it’s not just the financial cost you need to consider. It’s the time, stress and administration required for a lengthy court case. If you go through the court process without the support of an insurer and their lawyers, it will severely impact your business operations. PI insurance can help ensure that your business keeps operating, whilst the insurers and their lawyers manage the claim. More importantly, it can give you the freedom to get on with what you do best. Allowing you to focus on the day to day activities of running your business.
In summary, when considering why you need pi insurance, don’t just think about what someone may claim if you allegedly made a mistake. Think about the time, energy and effort it takes to defend a claim, even if it is unfounded.
Go to FD Beck’s online quick quote to get your Professional indemnity insurance quote. Answer a few simple questions to generate your online quote. Almost 150 professional occupations are covered. Don’t just think your covered, know you are.
For over 100 years, FD Beck has protected Australians. Rest assured, we have the knowledge and expertise to handle every aspect of your insurance needs.