Professional Indemnity Insurance
What does professional liability insurance cover? Anyone is capable of making errors, but if your business is found liable for negligence, the costs can be financially devastating. In addition to potentially leading to an expensive lawsuit, your company's reputation may suffer as a result. This is why professional indemnity insurance is important - to protect your assets and reputation if your advice causes a client to sue you.
Who needs Professional Indemnity Insurance?
Some professions, including medicine, accounting, law, and financial advisors, are required by law to carry professional indemnity insurance, with state-by-state requirements varying. Even if it is not required by law, it is recommended for anyone providing professional services or advice for a fee, such as graphic designers, IT consultants, and others. It is frequently a customer requirement that you have this coverage in place, regardless of your legal obligation. Professional indemnity insurance helps cover the costs associated with legal action brought about by your professional advice.