We live in a world where every individual is dependant on the other for a wide variety of services and supports. No person or organization can operate as a stand-alone unit and everybody has to take help of others from time to time. This has given rise to professionals who extend their services to others for a fee. All such professionals owe a duty of care to their clients and are legally bound by it. It is expected that every professional is an expert in his chosen domain and has sufficient knowledge and skills to carry out the task associated with it diligently and with perfection. They will use their expertise and skills to maintain the standard of conduct expected of their profession. However, in case if they fail to do so they can be held liable in a court of law. The aggrieved party can sue them and if proven liable they will have to pay for the damages. This liability also extends to the act of negligence, omissions or errors.

Now, this may seem as a perfect cause and effect relationship where one has to pay for the damages caused by his mistakes. But, unfortunately there are other repercussions associated with it as well. First of all, the fear of being dragged to court will always loom large in the eyes of the professional and that will affect his productivity and efficiency. Secondly, in due course, everybody is liable to make a few mistakes. Such mistakes should not jeopardize one’s career or affect them financially. And last but not the least, we will have to understand that nothing and nobody in this world is perfect. The threat of a huge financial backlash can prevent the professionals from taking hard or risky decisions which might be the need of the hour.

Professional liability insurance takes away this threat off the shoulders of the professional. In case of damages claimed they can pitch in and dole out the requisite amount saving the professional from a financial crisis.



By: Anirban Bhattacharya

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Setting up your business insurance whether it’s a new policy or renewing an old one can be quite a daunting task. Insuring your company is exceptionally important and so it is necessary to obtain the right insurance for your business. Everyone has many questions when sorting out their business insurance, here are some of the most frequently asked questions and their answers.

Q. What is professional indemnity business insurance?

A. Professional indemnity business insurance provides protection against potential claims of breach of professional duty. It protects the business and their employees, and can sometimes lend to cover consultants who are acting on behalf of the business in question. In some business professional indemnity business insurance is compulsory such as accountants. It covers the business in case of negligence (perhaps giving incorrect information or making a mistake when working on the clients behalf), or loss of professional documents or data and so on. 

Q. What is Business Interruption Insurance?

A. Business Interruption Insurance (sometimes called Business Income Insurance) covers your business for any loss of profits due to your business not being able to run normally for example if the premises become untenable or if the office needs to close down due to legal proceedings if a claim is made.

Q. What information do I need to give in order to obtain a quote for my business insurance?

A. When setting up your business insurance it is recommend to obtain a few different quotes from a few different insurance companies. In order for insurance companies to give you an accurate price regarding your business insurance you will need to answer a series of questions, these may include:

• your profession and industry

• the level of cover you need

• annual turnover, annual gross income, and annual fee income. If the business is new you’ll need to give your first years estimates 

• business name, contact name and email address

• a few things about your business activities

• previous claims history

• the date you want cover to begin 

• bank details

These questions will differ slightly from company to company.

Q. What is an Excess and why do you have to pay it with business insurance?

A. An Excess is the amount you have pay if you make a claim through your business insurance. The amount of Excess you will need to pay is stated in the policy and is a set price; this can be anything from £50 to £1000. The amount of excess you pay is set by the insurer and so it is necessary to check this before committing to a policy.



By: Diana Wright

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