If you’re in a service-oriented business interacting with the public, having professional indemnity insurance is crucial. Skipping this step can expose you to serious risks that you might not anticipate. Fortunately, getting this insurance is neither complicated nor expensive—you can even get it online.
The biggest issue with not having professional indemnity insurance comes when you face a claim. In the worst-case scenario, it could lead to serious financial troubles, possibly jeopardizing your business or personal assets. So, it’s essential to have this insurance, no matter your line of work. For example, pub owners can choose pub insurance, and office owners can get office insurance.
Even if your services are excellent, remember that we live in a time where lawsuits are common. This trend, once mainly seen in the US, is now increasingly prevalent in the UK too. With many lawyers offering no-win, no-fee services, people can easily file claims for even minor errors, whether financial or emotional. Everyone makes mistakes, often due to bad luck rather than professional misconduct.
Certain professionals, like financial advisors, accountants, and legal advisors, are legally required to have indemnity insurance. Many professional groups also require their members to be insured. Even if it’s not a legal requirement for all public-facing professionals, not getting this insurance is a shortsighted business move.
If someone makes a claim against you, defending yourself can be costly, even if you’re in the right. And if you’re found liable and have to pay compensation, things could get very serious.
A simple cost-benefit analysis shows the importance of being insured. The small amount you spend on insurance can protect you for several million pounds, making it a very wise investment.