Professional Indemnity insurance is one of the ways in which any business that offers its professional consultation to its client can protect itself from various claims suggesting any and all damages. It is a must-have insurance coverage policy for any business that deals with cases of perceived expert advice. You and your business are professionals to the best levels you can be, but it is important to remember that you are human, and your business is operated by humans. It is completely and entirely possible for humans to make mistakes.
This insurance coverage type ideally protects you from any legal claims, and if there are, the coverage claims can help cover the cost of the legal proceedings. In case of any lawsuit, Professional Indemnity coverage becomes paramount to making sure that not only are your legal fees being paid but also that the operations of your business do not get hindered as a result of the aforementioned filing.
Since this coverage policy is only limited and recommended to a few businesses, there are many myths that surround Professional Indemnity insurance coverage. Any professional indemnity insurance broker in Brisbane can help you make sense of whether your business needs this insurance coverage. It can be hard to navigate the world of insurance as is, including subtypes of coverage claims, which is sure to create confusion among the masses and lead to ill-conceived notions of what exactly professional indemnity insurance is and how it can help various business owners.
Myth #1: Only Covers Large Corporations
Although it seems to be a fancy coverage, Professional Indemnity is not only meant for large-scale businesses and established corporations. Rather, it is meant to help any and all businesses, particularly small businesses. Small businesses or independent freelancers would suffer to keep afloat if there ever is a legal claim against the services they provide. Having PI insurance coverage helps keep the business functioning and ensures that your employees are able to keep their jobs.
Myth #2: General Liability Covers It All
While general liability covers a wide variety of damages and injuries, it does not, in any case, provide coverage for any claims against professional negligence. One must not be under the illusion that if you have general coverage, it will provide for every single claim. Professional Indemnity coverage is specifically designed to help you and your business navigate any legal claims against professional negligence.
Myth #3: Nothing Will Go Wrong For Me
If you have decided not to opt for Professional Indemnity coverage based on your past pleasant experience, you should reconsider this decision. No one can predict the future, so you should not dismiss this specific coverage based on your past record. It is understandable that you would want to avoid an extra expenditure on your monthly budget, but if someone does end up filing a legal case, it will cost a lot more to traverse through all the legal procedures without a financial handout.
Myth #4: Too Expensive To Afford
Another misconception about the PI coverage is that it is too expensive to afford. Often, it just varies with the type of business, your risk management, and the location of your business. Insurance policies are often highly personalised with regard to what your business is and how it is run. You can seek a professional indemnity insurance broker in Brisbane who can help you manage the factors that might be driving up your insurance premiums.
Myth #5: Contracts Will Offer Protection
Your contact might include a precautionary disclaimer that might cover your and the business’ overall liability, but you are not really protected from any legal claims of negligence. Having professional indemnity insurance coverage will prove to be a helping hand when it comes to covering legal fees and defence costs.
Myth #6: Clients Do Not Have Monetary Expenditure
Your clients may not be able to afford a lengthy, drawn-out lawsuit, but they can still seek damages and reparations outside of an official courtroom. There are various ways through which a client can seek monetary compensation, mostly through small claims court or through professional bodies. Professional indemnity coverage will cover these costs even if the settlement takes place outside the courts.
Myth #7: Finding a Professional Indemnity Insurance is a Puzzle
Consulting a professional insurance broker in Brisbane might help you find the right offer for Indemnity coverage. They can help simplify the process and provide you with various solutions to reduce your insurance premiums.
Conclusion
It ensures that you can run your business smoothly despite any and all legal troubles you might face when it comes to professional negligence. There are a few misconstrued ideas about this coverage that one must get clarity on as soon as possible. Find the correct insurance coverage by seeking a trusted and professional insurance broker in Brisbane.
