What is Professional Indemnity Insurance?
Make Sure You're Covered
For those who work in certain sectors, it’s a legal requirement to have professional indemnity insurance in Ireland. If you want to find out whether this type of policy could benefit you and your business and see what types of issues are covered by this form of insurance, take a look below.
Do I Need An Indemnity Policy?
To answer this question, you need to think about what would happen if the advice you gave a client or the work you did for someone was wrong and the customer lost money as a result. If the answer is that they could sue you or your company, you certainly need to consider some form of professional indemnity cover.
No matter how good you are at your job, problems can arise. Everyone makes mistakes occasionally and it only takes a moment of lapsed concentration for something to be missed.
These simple errors can easily end up costing a firm thousands. It's not unheard of for a relatively simple mistake or omission to lead to a big compensation case that bankrupts an otherwise profitable business.
A Claim That Your Work Does Not Meet The Brief
If a client believes that you have not met the agreed brief, they could potentially sue you. It only takes a misunderstanding to create a situation where this could arise.
A Claim That Your Work Is Inaccurate
Accountants and bookkeepers can sometimes be accused of producing inaccurate work. Mistakes in these professions can lead to clients making losses or falling foul of the authorities.
A Claim That Your Work Is Substandard
Most professionals’ work is governed by a long list of regulations and standards. For example, the designs architects produce must adhere to all kinds of standards and regulations. Inevitably, on occasions, things are missed. In that situation, indemnity insurance becomes an invaluable asset that provides a solution.
How To Buy The Right Coverage
A policy that is right for an architect may not be right for an accountant, an interior decorator or an engineer. Every business is different, so it’s important to choose the right policy for you and your company.