Taking out a professional indemnity insurance policy should be among your very top priorities as a professional services provider to ensure you are protected against any legal action that may come about from bad or misleading advice that you give.
Solicitors, accountants, architects and multitudes of other types of professionals provide their advice and services of which their clients strongly depend on. As a thoroughly experienced professional, it is reasonable to say that the skills you hold can be of true reliability.
However, things can get messy at times. Accidents, mishaps and alike are inevitable. There is no such thing as a perfect system. The same principle applies to professional services.
Whether you are a self-employed professional or someone who holds an enterprise, getting yourself an insurance policy would be a safe route to take. For such setting, you will need to secure a professional indemnity insurance.
There are four major reasons why you need to get your own coverage.
Mistakes Can Lead to Financial Loss
Making a mistake throughout the course of your job and line of work could have a significant financial impact upon both you and your client. You are hired by someone with the basis of your advice being a sound one and seemingly an effective path to take.
With that in mind, it is likely for you to be held accountable for any possible costs incurred due to the omissions or errors that resulted from the provision of any of your services. Professional indemnity insurance will spare you from the steep cost of legal claims. Not only that, this insurance also covers for the compensation sought by the third party or the client. If there would be any cost for you to comply, it would be very minimal such as processing fees that legal firms that do not generally link with insurance companies.
Your Reputation is at Risk
When you face legal claims due to your professional mishaps, your name is basically on the line.
When the whole complaint goes through, your name could be tainted with a negative image, especially on the records. This can be avoided through indemnity coverage.
Your Opportunities Are at Risk
In the event you happen to be proven guilty through a court trial process, it may be a simple case of having to pay for compensation to make up for the casualties on the third party’s end.
In this scenario, your reputation has been negatively impacted. With that in mind, future clients may choose to avoid your services even when the complaint is resolved. There will always be clients who do thorough look ups before they proceed with professional services.
Customer Dissatisfaction Can End Up in Court
People vary from one another. The clients you may have dealt with in the past may have been considerate to let you slip through the minimal faults you have committed unintentionally. However, there are also people who will keep an eye on every aspect of your services.
They may spot your flaws with the way you render your services and advice as they may have dealt with experts like you in the past. Basically, they will compare you retrospectively, which means their level of satisfaction has already been set from past akin services. If you don’t live up to their standards, they will subject you to court demands.
Fortunately, professional indemnity insurance can save you from the trouble of court trials.
Australia may have vast opportunities for every kind of professional out there, but even when you’re on the top, you are still bound to fall with a single incident. Keep your professionalism on the safe side with professional indemnity insurance.