Who needs professional indemnity insurance?
As an individual or a business entity, you need to have yourself protected against unforeseen events, and the protection essentially includes insurance covers. One such insurance cover is professional indemnity insurance, which covers the compensation awarded to a client in the event of a lawsuit against those who provide professional services. Following are a few professions that need professional indemnity cover:
IT professionals: At times, projects undertaken by IT firms don’t go as planned. Although, minor aberrations to the specified guidelines can be reworked or resolved over a discussion with the client, it is not possible when the damages are significant. In such events, professional indemnity insurance can save you from the consequences of a huge financial loss.
Recruitment agencies: In the event of an accident due to negligence of a staff member who was recruited by an agency without proper reference checks, the client can file a lawsuit against the agency. The agency can also face lawsuit if confidential data is stolen or lost from the client’s office and the employee entrusted with access to the data is recruited by the agency. Small agencies may not have the resources to deal with such incidents and hence, need to be covered.
Business consultant: If you are working as a consultant, advising businesses on a day-to-day basis, then any loss resulting from the services provided by you can lead to a legal claim. However, if you have professional indemnity insurance, such events can be taken care of and you can avoid an impending financial loss.
Fitness trainers: As a fitness professional, it is absolutely necessary for you to ensure a high quality of service. However, often we cannot do much about unexpected turn of events. An injury during training may not only damage your reputation as a trainer but can also lead to a legal battle. Your clients can also file lawsuits if the services provided by you do not conform to the desired level of your clients.
Teaching professionals: Similar to fitness professionals, teachers also need to be prepared for unforeseen events. An injury in the classroom or complaints of below par tutoring can result in adverse consequences.
Apart from the ones mentioned above, various other professionals also need to be covered under professional indemnity insurance, including but not limited to designers, wedding planners, and photographers. Although it’s mandatory to have professional indemnity insurance for certain professionals, it’s advisable to have yourself covered, even if you are not obliged to, if you fall under the categories mentioned above.