Is It Mandatory Or a Requirement of Law to Have a Professional Indemnity Insurance
Professional companies that sell medical malpractice insurance also sell PI insurance. PI Insurance or Professional Indemnity Insurance is one that covers the legal expenses and costs that your defence is going to incur. If a client alleges that your service led to a mishap or an accident, paying the money towards these cases is difficult.
In some cases, it will also cover both the costs and damages that might have occurred when you are providing a service. Now, this also includes you providing inadequate advice as well as providing improper design that may have led to this mishap.
Small mistakes can lead to big disasters. Mistakes can happen due to negligence, overlooking of an aspect and so forth. When this happens, you do not want to end up struggling by looking out for money. If there is PI insurance in place, you will worry less as you know that you and your company are safe and secure. The challenge that you will face is only a passing cloud.
Do I Need a PI Insurance?
Many companies do not know if they should get PI insurance. They struggle when it comes to making this decision. Here are a few things that you need to consider when you are in confusion and are unable to make a decision:
- Check the regulatory requirement of the respective industry that you are into before you proceed forth.
- Are you providing professional services or advice to your clients? Now, this includes contracting or consulting!
- If you are a design engineer or an architect that provides designs to your customers, you might want to get PI insurance.
- If you desire to protect or safeguard yourself from allegations that you were careless or that you did commit a mistake, you need to get this insurance.
- Sometimes, your client might want to have PI insurance as per the contract before rendering them any service. It is good to have this insurance coverage especially if you are a freelancer, self-employed professional, or a consultant. If you are getting into a contract with any company, it is crucial for you to thoroughly read the contract documents to check the prerequisites that your client has before you sign the contract or provide the service to them.
- You might need to get PI insurance if the regulatory body or Industry association requires you to have it before you provide any service.
- Check guidelines from the government using the professional standards council if they are going to provide you with the coverage through professional standard schemes. If yes, these associations will provide coverage to your company upto a certain amount. In case, the court sustains a case against your company, you will get capped compensation.
These are the seven reasons why you may need to get a professional indemnity pr PI insurance.
What If the Law Does Not Require You to Have a PI Insurance
Most of the professionals benefit greatly when they have this insurance in place. Even in some cases, wherein you might not need to have PI insurance, it is okay to get this insurance coverage.
Just imagine, how much money you might need to pay towards compensation payments and legal fees if one of your clients put allegations against you in the court. When things like this occur, you will not lose peace of mind.
Now, this is the main reason why a lot of professionals and professional companies get professional indemnity insurance.
Buy the Insurance from Well-Reputed Company
Finally, you need to purchase professional indemnity insurance from a company that has the best name and reputation in the market. People do not trust all the insurance companies that are in the country. It is the main reason why you need to take the time to do proper research when you are purchasing PI insurance or medical malpractice insurance.
You need to take the time to check the terms and conditions before signing the document. It is the only way you can protect things that you love and have struggled building over many years. If you have any questions, clarify the same by speaking with representatives of the insurance company.