In today’s day and age, businesses are constantly worried about finding themselves in some form of a lawsuit due to actual or perceived negligence or faults. This can, in part, be attributed to the changing economic climate with many technological advances and increased regulatory pressures. So, what can businesses do to protect themselves if they find themselves facing a lawsuit made by a third-party?
Fortunately, there is an excellent solution in the form of professional indemnity insurance (PI insurance). This is a type of cover which will cover the legal costs and expenses for your defense as well as any damages or costs that are awarded if you lose the lawsuit. You are not obliged to have this type of insurance, but without it you could find yourself out of pocket by thousands of pounds to cover the legal fees and compensation payments, plus you must also consider that you could be losing income from time spent handling the lawsuit.
What businesses is it suitable for?
Professional indemnity insurance is important in many different industries and should be considered by all business owners. It is particularly important for those that provide any kind of advice or a professional service to clients, if you provide designs or if your industry association or regulatory body requires you to have PI insurance. In addition to providing important protection in case of a lawsuit, having PI insurance will provide peace of mind knowing that you have protection in place.
As with any type of insurance, no two policies are the same and it is important that you take the time to find the right provider. Ideally, it will be from a specialist like Gallagher where you can receive expertise across a wide range of professionals and wording which is customised to your particular industry. Additionally, specialists like this will be able to provide comprehensive coverage with affordable premiums so that you can reduce overheads whilst still getting the protection that you need in place.
Businesses in all industries must be aware of the threat of litigation in the current marketplace. Increased regulatory pressures and technological advancement has made lawsuits very common in today’s day and age which means that businesses of all sizes and in all industries need to take steps to protect themselves. The best way to do this is with professional indemnity insurance which could save a company thousands of pounds in legal fees and compensation payments if a lawsuit is filed by a third party.