Maintaining Professional Indemnity

Tuesday, October 15, 2013

Last night, no doubt like many others, I put on my television and was met with a barrage of adverts, all designed to push me in the direction of computers companies, furniture providers, and quite surprisingly, a glove that can be used as a mobile phone. Amongst all of this however, I was met with the public enemy number 1, the all singing all prancing tenor who looks as though he has taken 'movember' that bit too far. Of course in many ways, the fact that we live in a society that embraces quite literally singing about insurance from rooftops is positive in some ways, but on the other, are we really any wiser when it comes to policies and premiums?

Insurance obviously comes in many forms and protects policy holders in many different ways, and attempting to understand each policy can be an arduous process. Insurance in general is hardly an attractive and to be honest interesting subject to discuss, but regardless of this, indemnity is essential, therefore understanding it is necessary.

Business insurance is a huge market in the world today, and the variety of protection and products is vast. Pinpointing small businesses, primarily contractors and freelancers, shows that one product proves to be very important, and integral when looking at certain professions. PI insurance is a very popular form of insurance, targeting small businesses and limited companies, providing professional indemnity to the policyholder, covering financial costs of any form of liability claim brought about by a professional error.

Of course this brief description only scratches the surface of what PI insurance offers, its many forms of protection make it a very high quality and multi beneficial form of contractor insurance. This poses the question, how relevant would PI insurance be if it was advertised on our screens every day? Would people take an interest, or even acknowledge its presence? (Although when its being shoved down your throats by overweight opera singers and Russian rodents, its hard not to acknowledge something). Business insurance is historically a very popular but often understated form of insurance, price comparison websites and advertisement billboards taking bigger interests in car or home insurance as opposed to protection aimed at the professional sector. This is an often baffling fact considering the sheer number of business insurance premiums sold, especially when considering a product such as PI insurance and its popularity.

PI insurance, being a policy that protects professional indemnity is obviously common throughout the business sector, but despite its clear popularity, is not universally recognised as a common insurance product. This being said, this does not take away the actual importance of PI as a cover policy, and doesn't reflect on the insurance and its effectiveness.

Contractors rely on certain forms of protection to sustain their professions and secure their limited companies. PI insurance is a vital commodity to any self-employed professional, and despite its lack of commercial popularity, continues as one of the most popular and important forms of business insurance.