Today is an age in which compensation is a natural course of action regarding any perceived slight or mishap. It is an area in which the business professional must be aware of the potential for being sued for a variety of reasons. Professional Indemnity Insurance (PII) has become necessary for any person whose decision could have adverse consequences and be taken legally to task should any complications occur.
This type of insurance offers protection against a variety of complaints. They include claims against you related to a diagnostic mistake or for perceived loss or damage sustained through negligence in respect of the services you provide. In the event of a court action the legal costs involved are highly significant but are usually covered by Professional Indemnity Insurance.
Asking how much is professional indemnity insurance and making a decision as to the exact amount you require cannot be answered in general terms. However, most insurance providers of this type of insurance generally stipulate a minimum insured sum of £500,000. This is likely to be influenced by the nature of your practice and the potential consequences of a misdiagnosis or any wrong advice given related to a service. For a professional conducting business in a perceived higher risk application, such as medical fields or specialised industries the potential for high compensation claims is greater than perhaps for someone in another field.
There are various factors that influence claims for compensation but they are related to incidences that could occur at any time. If you are conducting a practice or advising on complex and high value financial matters it would be to a great degree incumbent on you to determine the potential value of claims and resultant costs that could be made against you. With a qualified insurance consultant it could be resolved relating the level of the risk involved to the service you provide.
As your professional livelihood could be heavily influenced by the nature of these claims it is advisable to seek an expert opinion before committing to Professional Indemnity Insurance. Make sure you are fully aware of the terms and conditions related to a policy and that it meets fully your specific requirements.
You can learn about find out how much is professional indemnity insurance at Specialistrisks