If you work directly with the public, having professional indemnity insurance is essential. Skipping out on it can lead to unexpected and serious risks. Fortunately, obtaining this insurance is straightforward and affordable, and you can even get it online.
The biggest drawback of not having professional indemnity insurance becomes clear if you’re ever faced with a claim. In the worst-case scenario, you could face severe financial losses that might threaten your business or even your home. Therefore, having this insurance is necessary no matter what field you’re in. For example, pub owners can get pub insurance, while office owners can opt for office insurance.
Even if you provide excellent services, it’s important to remember that we live in a litigious society. While lawsuits were once predominantly an issue in the US, they have become more common in the UK too. With many lawyers offering no-win, no-fee services, it’s easier for people to file claims for even minor mistakes, whether financial or emotional. Everyone makes mistakes, often due to unforeseeable circumstances rather than professional negligence.
Certain professionals, like financial advisors, accountants, and legal advisors, are legally required to have indemnity insurance. Many professional organizations also mandate insurance for their members. Even if it’s not a legal requirement for everyone working with the public, choosing not to get this insurance is a short-sighted business decision.
If a claim is made against you, proving your innocence can lead to unexpected costs, regardless of the claim’s validity. If you are found liable and have to pay compensation, the situation can become extremely dire.
A simple cost-benefit analysis shows the importance of being insured. The small expense of insurance buys you protection worth several million pounds, making it an investment well worth considering.