Let Professional Indemnity Insurance Save Your Day

ByMartyn Piper

Although professional indemnity coverage is mandated by law for certain types of businesses especially those in knowledge-based industries like accountancy, it is still a sensible step to secure said coverage. Businesses are well advised to provide for themselves a certain degree of protection against expensive litigations simply because we live in an increasingly litigious society.

In fact, professional indemnity coverage will save your day and, eventually, your business from certain ruin. If you are still on the fence about getting one for yourself and your business, we suggest you keep reading and see why it is a must in so many ways.

Protection from Legal Liability:

Few businesses are spared the possibility for lawsuits from their employees, clients and partners as well as the government. With professional indemnity coverage, your business can be substantially spared of two things that come with each lawsuit, namely, the exorbitant legal costs from lawyers and monetary settlements/awards for the plaintiffs. Just imagine the amount of money you will be saving with the insurance!

Keep in mind that every penny counts in a recessionary economy. So, if you are in an industry where litigations are all too common, it is to your best interest to secure a good professional indemnity insurance policy to protect your bottom line. When business is slower than usual, this will save your business for another day.

In case you have been wrongly accused by the plaintiff, your insurance company will also provide for the costs of hiring an expert defence panel. You have greater chances of actually beating the charges and, in the process, defending your reputation in the industry.

Coverage for Remedial Measures:

Let's assume that you and the complainant decide to rectify the issue at hand without the lengthy, laborious and expensive process of going to court. You will still need money to implement remedial measures to considerably lessen, if not completely eliminate, the possibility of future lawsuits arising from or related to the resolved issue.

This is where professional indemnity insurance comes in. The insurance company will cover for the remedial measures to a certain extent as agreed on the policy. In most cases, the coverage is substantial, thus, sparing your business of yet another cash outflow that can be used for other worthwhile purposes. You can choose to use the 'savings' on expanding your business, for example.

Greater Business Opportunities:

Many business owners and managers have realized the value of pi insurance beyond protection against litigations. It can actually expand your business' horizons, in a manner of speaking. How?

Most companies in the private and public sectors will only work with organisations covered by pi insurance that meets their standards. If you cannot present said coverage, you are excluded from the list of qualified organisations allowed to bid on the projects. Take note that said coverage is also in the vested interests of the companies offering the for-bidding projects, which explains this pre-qualification requirement.

Now, if you have the right coverage, you can readily apply for these projects. Cost-and-benefit analysis will show that the amount paid for the insurance will be a small fraction of the possible profits made from the projects handled by your business.

Indeed, your decision to secure professional indemnity insurance today will save your day and your business tomorrow.

Martyn Piper is an expert on professional indemnity insurance and after working within the industry for many years he now writes and shares some of that wealth of knowledge to help consumers realise the value of pi insurance beyond protection against litigations.

Article Source:http://EzineArticles.com/?expert=Martyn_Piper

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Martyn Piper

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MLA Style Citation:
Piper, Martyn".".20 Feb. 2012EzineArticles.com.28 Feb. 2012 .APA Style Citation:
Piper, M. (2012, February 20). . Retrieved February 28, 2012, from http://ezinearticles.com/?Let-­Professional-­Indemnity-­Insurance-­Save-­Your-­Day&id=6892737Chicago Style Citation:
Piper, Martyn "." EzineArticles.com. http://ezinearticles.com/?Let-­Professional-­Indemnity-­Insurance-­Save-­Your-­Day&id=6892737EzineArticles.com© 2012 EzineArticles.com
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