A
professional indemnity insurance quote is almost always needed if you
are giving advice to clients. The reason for this is that
with the
advice you give comes a level of risk. That is why if you are looking
for professional indemnity insurance that you should ask for a number
of quotes from companies that offer this service.
By
getting quotes from a number of service providers then you will be
making sure that you get a good deal for not just yourself but also
for your company. Likewise you will also be exposing yourself to a
number of different policies and you will get to see the different
terms and conditions available for your situation.
It is
true that in today's litigious environment there are a lot more
measures that you need to put in place when providing services to
your clients. Perhaps the main measure from an insurance point of
view is covering yourself by taking out professional indemnity
insurance (PI insurance). This PI insurance usually covers you for
advice you give to clients that typically leads to your clients
suffering a financial loss. For example you may have provided
outdated advice, wrong advice, misleading advice or even advice you
thought was correct but was incomplete.
It is
the errors in professional services such as these that will increase
the risk of a claim being made against you or your company. Usually
there is no ill intent on the behalf of the person providing the
services however if it leads to a loss of income or damage to the
person you are providing the advice to then your risk of a claim will
usually be more substantial.
Obviously
the policy of the professional indemnity insurance that you choose to
take out will cover you for different elements so it is important to
read and review the policy documents in detail before signing any
agreement.
During
the review period you should make sure you are clear on what you are
covered against and what you are excluded from in your particular
policy agreement. If you are not sure about exactly what you are
covered for then you should also consider engaging the services of a
lawyer who specializes in professional indemnity insurance.
The
level of cover that you are wanting to take out will effect the
premium that you are going to pay. For example, the premium on a
policy with $1 million cover will be cheaper than the premium you
will pay for an insurance policy with $20 million cover. That is why
it is important to decide on your level of risk of the professional
services that you provide your clients.
Obviously
the larger your perceived level of risk then you should consider
taking out a larger insurance premium. However, the larger your
insurance premium then the more financial outlay you will need to
provide in order to be covered by your insurance policy. That is why
it is critical in the beginning to determine what your particular
risk is before you take out an insurance policy.
Depending
on what is included and what is excluded from the professional
indemnity insurance policy and the level of cover that you wish to
take out will effect the premium that you will be paying. That is why
it is critical to approach a number of PI insurance companies and ask
for a quote before proceeding. These quotes can obviously vary
depending on the policy that you decide to take out. However,
obtaining a number of quotes will help you to make an informed
decision when taking out your insurance policy.
The
other benefit of approaching a number of insurance providers is that
you will be able to determine what the particular terms and
conditions are of each policy that you decide to proceed with. If you
are unclear of what the terms and conditions represent then you
should consider engaging the services of a lawyer who specializes in
professional indemnity insurance.
The
insurance companies you approach will typically work on a commission
basis for the larger insurance companies who underwrite the insurance
policies. It is possible to go straight to the larger insurance
companies and ask for a direct quote however this can take a
considerable amount of time. The reason for this is that you will
need to know what is included and what is excluded from all of the
policies that you review when looking for a quotation.
That is
why going through an insurance broker who specializes in professional
indemnity insurance can be a worthwhile avenue of action. The reason
for this is because they deal with PI insurance policies regularly
and depending on your circumstances will be able to align you with a
policy that suits your needs.
However,
the premium that you pay to take out the insurance can vary quite
dramatically. That is why it is important that you obtain a
professional indemnity insurance quote from a number of service
providers. Although this can be time consuming, it will allow you to
make an informed decision on the type of PI insurance that you are
ultimately covered by.