There are more than just a few ways your business can benefit from Professional Indemnity (PI) insurance and we’ve highlighted the main reasons for you to consider.
If you’re asking yourself: how can your business benefit from Professional Indemnity insurance, this means your small business is growing and will need a certain amount of protection against the unique liabilities your occupation presents.
Because your business is in a specialized occupation, whether that is architecture, bookkeeping, or construction – you will need a certain amount of specialized cover in the form of Professional Liability insurance cover.
In this article we briefly detail what PI insurance is, how to determine the amount of coverage you’ll need, how to understand your policy, and more.
Professional Indemnity Insurance Briefly Explained?
Professional Indemnity insurance is aimed to help professionals who give advice or provide a specialized service/field and will provide you cover against loss due to negligent acts, errors, or omissions.
Some of the specialized fields that benefit from Professional Indemnity insurance include:
- Accountants and bookkeepers
- Attorneys and notaries
- Graphic Designers
- Real estate agents
- Architects and civil engineers
- And more
As a specialized business owner, your operations will always include working with clients or the public, and the risks and liabilities you’re exposed to can be wide and varied.
If you are exposed to the following risks as a business owner in South Africa, you can greatly benefit from Professional Indemnity insurance:
- Claims from a client for financial loss resulting from your professional services
- Claims for breach of professional duty
- Claims for defamation, for example, a client claims that you have made a defamatory statement about them.
- Claims for infringement of intellectual property rights
- Claims for loss of documents or data, for example where a client claims you have lost or damaged their important documents
It is however important to note that PI insurance may not cover all types of claims or losses and the coverage can vary from policy to policy. For this reason, it is recommended to read the policy documentation and understand the terms, conditions and exclusions.
The Benefits of Professional Indemnity Cover
We’ve briefly detailed the benefits for your business when you have PI insurance, and how this type of cover will provide the protection you need to grow and prosper.
At the core of all business risk, is the potential for a PI claim against your business. Such a traumatic hit to your finances, without the aid of insurance, is a scary notion for any growing business.
Legal costs, defence fees, compensation, mitigation, and other fees that are involved with Professional Indemnity claims are impactful, and if you don’t have insurance in place, these costs could cause massive financial disruption to your business. It could even permanently shut down your business operations.
Ask yourself the question: ‘can my business afford any large unaccounted fee or expense without aid or support?’ – and if you’re not certain of your answer, Professional Indemnity insurance is something you should consider ASAP.
One of the biggest risks for any business is the possibility of being sued for professional negligence or a mistake in your work. This is where Professional Indemnity Insurance comes in.
Professional Indemnity Insurance provides coverage against future claims and lawsuits, even if a claim is made against your business many years after a project has been completed. This means that your business is protected against unexpected legal action, which can be particularly important for businesses in industries where the risk of claims is high, such as consulting, engineering, and IT.
Peace of Mind
As a business owner, it’s hard to give a price for peace of mind. You have an infinite list of things to worry about when it comes to your business operations – on top of the worry about an unseen mistake creeping up weeks later.
Professional Indemnity insurance will let your mind rest easy knowing that any incident or claim in the future will not only be handled swiftly, but handled by the best.
When working with the right insurance provider, any claim made against you in the future will be handled with efficient speed and expertise.
One of the main draws of Professional Indemnity insurance is knowing you can rest easy in the event of a claim – and that the legal aspects and details will be handled by professionals, so you can still focus your time on keeping your business operating.
In any business, your reputation is your ‘bread and butter’. Ensuring your name and brand remain untarnished is the only way you can grow in any industry. One claim against your business can cause a cascading effect on your reputation and brand name.
Any legal matter that is drawn out and made public can result in an online post or social media thread, which can cause your name to be associated with that mistake on a large scale.
When you can settle a legal matter or claim quickly and wrap up any mitigation amicably, you can avoid any media scandal or “social callouts” while your name remains unblemished.
At Bi-Me, we’re acutely aware of the risks and difficulties business owners face in South Africa, especially when it comes to finding the best and most cost-effective insurance policy.
With our advanced tools, you can find the best and most competitive quotes from some of South Africa’s leading and trusted insurance providers. You can also directly contact us for more information about any queries.
*This is general information only and does not take into account your financial situation, needs, or specific objectives. As with any insurance, the cover will be subject to the terms, conditions, and exclusions contained in the policy wording.