Everyone makes mistakes from time to time. However, owning a company comes with a lot of responsibility, and when someone makes a mistake, it is your reputation on the line. Mistakes in business can cost a huge amount of reparation and lead to financial, legal, and reputational challenges.
It’s essential to thoroughly train your team and educate them on what could happen if inevitable mistakes are made. Of course, sometimes mistakes happen out of human error, and they are simply unavoidable. Fortunately, professional indemnity insurance can cover you and your organization’s flow from any unexpected interruptions.
Professional indemnity insurance is an error and omissions insurance that protects business owners, freelancers, and employees when a client claims a service is adequate. Every company should consider investing in professional indemnity insurance to avoid detrimental consequences down the line.
Professional Indemnity Insurance Advantages
However, some policies do not cover temporary employees or claims about work done before the insurance policy. This insurance does not cover criminal prosecution and specific liabilities that may arise in court. Often insurance brokers, investment advisers and other financial professionals acquire this insurance. However, it could also be obtained by non-profits, maintenance companies, contractors, and multiple different types of business. Here are six advantages of professional indemnity insurance.
Increase your credibility
Clients and investors want to work with a company that has a good reputation and brand image. Professional Indemnity insurance improves your brand’s reputation and reassures investors of your services. If problems do occur, the insurance is in place to support you and your investors. Insurance makes a statement to investors and lets them know that you hold yourself accountable for any company mistakes.
Financial protection from lawsuits
It’s no secret that lawsuits can cost businesses a heavy penny. Insurance can cover your defence costs, such as lawyer fees and the cost of legal documents. It protects your business from going under due to error and emission claims and helps you fight against them.
More chances to win tenders
Sometimes professional indemnity insurance is required by certain government authorities to apply for the tender. It can improve your chances of winning the tender – and help you get your foot in the door when insurance is mandatory.
Peace of mind
Insurance might seem like an unnecessary cost at first. However, a lawsuit is filed against your company later down the line – the cost of insurance will be nothing compared to court and lawyer fees. Professional indemnity insurance can give you peace of mind and help you run your business with a level head.
Keeps your business running
When you are dealing with error and omission claims, it can cause a lot of stress throughout the business. However, with insurance, you can receive a helping hand in dealing with that stress and the monetary cost of the claim. Your employees can continue working as usual while you and your insurance provider deal with the claim. Professional indemnity insurance can act as the safety net you need when running a business.
Additional benefits
You can also add insurance to cover defamation, loss of documents and much more. Make your insurance as powerful as you like to keep your business safe.
