Professional
Indemnity Insurance
This
type of business insurance provides you with insurance cover
to protect you against the risks involved in doing your job.
If you are pursued by a third party which claim that as a
result of your professional negligence they have incurred
a monetary loss your professional indemnity policy will cover
you. Professional indemnity insurance is abbreviated to PI.
There are many instances which lead to an insurance claim
being filled against you, it could be anything from providing
incorrect help or advice, to making a wrong measurements on
architectural blue prints. When a claim is filled against
you your business insurance provider will pay the cost of
compensation to the claimant. With your business insurance
policy you may have an excess which means that you will be
liable to pay this amount first in the event of a claim. If
your excess if £400 and you have a claim for £10,400
you will have to pay £400 towards the claim and the
insurance company will pay the remaining £10,000. This
is the same thing as most people have on their home or car
insurance.
Optional Extensions
You
can get an extension of your normal insurance cover you could
protect yourself in the event that you take an action on behalf
of your client that leads to a loss. If the third party decides
to pursue you for their losses under some professional indemnity
insurance policies you will not be covered. With Liability
for breach of warranty cover you may protect your business
against these claims.
Claims
Insurance
for Professional indemnity is covers businesses in the event
that they are pursued by a third parties who claims that they
have suffered a loss as a result of their particular professionals
negligence.
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