Planning plays a big part in running a successful business. While the consideration of the prouduct and service one can offer is important, there are considerations behind the scenes that may play an even bigger part in ensuring smooth functions. To keep one’s venture sustainable for the foreseeable future, entrepreneurs need to invest in business continuity tools such as professional indemnity insurance policies.
What is a professional indemnity insurance policy?
Professional indemnity (PI) insurance policies are specialised insurance coverage plans for business owners, service providers and self-employed individuals.
The role a professional indemnity insurance policy plays in a business
A PI insurance policy offers financial assistance to an organisation when a client has sued it after they received products or services that were not on par with their (the client’s) expectations.
Benefits of a professional indemnity insurance policy
- Professional indemnity insurance policies cover the legal expenses and legal fees for the insured enterprise or insured individual when a disgruntled client sues them.
- A self-employed individual or an organisation covered by a professional indemnity insurance policy can strengthen its credibility in the eyes of its clients.
- Any crisis can hamper the continuity of an enterprise or the professional life of a self-employed individual. A professional indemnity insurance policy ensures that the person or the organisation in crisis keeps the business functioning while settling the claim that originated from their client who launched the claim.
To ensure that the professional indemnity insurance policy suits the unique needs of one’s business, one has to hire the right insurance broker.
How to choose a broker specialising in professional indemnity insurance policies?
One can choose a specialist for a professional indemnity insurance policy based on the following factors.
- It is best to hire a broker or get a professional indemnity insurance policy from an insurance company with the necessary certifications and licences issued by the FCA (Financial Conduct Authority). The FCA is a regulatory body that oversees all financial services and products offered by enterprises associated with the sector. It is an apex authority that is independent of the UK government.
- A professional indemnity insurance policy only comes into the picture when the covered enterprise or self-employed individual is facing a crisis. Hence, hiring a professional indemnity insurance policy specialist with a stellar reputation, primarily when representing clients and settling claims could be beneficial.
- One should always hire a broker or an insurance company who can readily address all the queries one generally asks before signing above the dotted lines. Any questions you may have prior to signing the contract needs to be discussed appropriately or have the specialist clarify your queries.
Hiring the right professional indemnity insurance broker can help businesses run smoothly. It is not only important to take out a PI insurance policy, it is also a good idea to hire a broker or get in touch with an insurance company with a stellar online (and offline) reputation.