Everything You Want to Know About Credit Advisors Professional Indemnity Insurance
Today you can find a variety of insurance policies apart from the credit advisors professional indemnity insurance. A lot of professionals these days apart from the lawyers and doctors do not think about the professional indemnity insurance. They think that their profession does not involve any risk.
But, in reality, a single indemnity can spoil not only your reputation but can lead your business or company to losses. Now, this is the main reason why you should plan on getting professional indemnity insurance irrespective of your profession.
What Exactly Is This Professional Indemnity Insurance?
Now, professional indemnity insurance is a policy that can safeguard you and the business that you did build over the years if someone sues your company. Your customers might do this if your advice or the service resulted in a financial loss to their firm.
This loss might have occurred because of various reasons such as negligence, omission, error, or a breach. Professionals who give service and advice can also get this insurance to protect themselves against these claims that their customers might file against them in the future. Now, a lot of professionals working in different settings can use this insurance.
Reasons For the Claims
There are so many reasons why a customer can make a claim against you. Here is a list of some of the common reasons:
• Providing incorrect information or advice that is misleading
• Ommissions in work by accident
• Work that is either incomplete or incorrect
• Slander, libel or defamation
• Breach in a contract or confidentiality
• Contractual Liability
Now, these are some of the key reasons why credit advisors should plan on getting credit advisors professional indemnity insurance.
Things a Professional Indemnity Insurance Covers
Getting professional indemnity insurance is going to be a saver for you. If the customer is successful with his claims, you are to pay him for the damages and losses. Now, that is a lot of money. Apart from that, you might have spent a lot of money on legal fees and the paperwork. Professional indemnity insurance is going to cover all of these things.
Now, if you think this is all, you are wrong. It will also assist you in hiring a public relations specialist who will help in building your reputation.
But the cover that you will get mainly depends on the policy that you are going to pick. Yes, this is the reason why you need to put in a lot of effort to research and to pick a policy that is apt for your profession. It is wise if you can also take the time to read through the policy to understand the benefits that you are going to enjoy before you pick one for yourself or the company.
Is It Necessary for Me to Get a Professional Indemnity Insurance?
You might need to plan on obtaining professional indemnity insurance if you are in any of these professions to name a few:
• Credit Advisors
If you are in any professional body, you might want to check with them to see if they require that you get one for yourself. Even if it is something that might not be a mandatory requirement, you should still plan to get one. It is going to protect you from the claims that your customers might make against you. If you do not have the insurance in place, you might have to pay a lot of money from your pocket. Now, this can lead you to terrible losses, and in the worst-case scenario, you might end up filing bankruptcy.
Things That Are Not Covered
You need to know that there are certain elements that the personal indemnity insurance or credit advisors professional indemnity insurance will not cover. Some of the most common exclusions are these:
• Dishonest Behavior or Illegal Works
• Punitive Damages
• Prior Circumstances
• Geographical boundary
It is wise for you to speak with the insurance agent to learn about the limitations before taking things forward. Understand the pros and cons of policy and check the various options before taking things forward.