- Thursday, 21 June 2012 09:41
- Written by Troy Stevens
Professional Indemnity Insurance (PI insurance) is a much needed, frequently bought policy, and is regarded as a business’s bread and butter when it comes to insurance. It is by far one of the most popular forms of business insurance and is one of the most essential, beneficial and therefore popular products on the market. This poses a couple of frequently asked questions however… Just why is it that PI insurance is so widely bought? And to whom is it most beneficial? Well, we know the answers…
Professional Indemnity Insurance, as we all know, protects a business’s professional indemnity. Now not meaning to ridiculously state the obvious, but the description doesn’t stop there. It is searched over 130,000 times a month on Google alone and its benefits are still being realised by many businesses and professionals alike.
In laymen’s terms, Professional Indemnity Insurance (PI Insurance) will protect you against the cost of defending claims where it is alleged that a client has suffered financial loss as a result of your error, omission or negligence. It is because of this that it is so necessary and it is as a result of its clear protection concerning the risks of the business world that it is so needed as a policy. From a huge firm, a tiny business or a contractor, PI insurance acts as a safety net in almost all cases of defending claims. PI insurance is purchased widely across the board of the business realm, and is most beneficial to practically everybody. It is a must for contractors and limited companies, but also for firms and organizations no matter how large or small. As to who buys PI insurance, the answer is everyone. Every company who has employees even limited companies who have only one employee, require and benefit from professional indemnity insurance, not only because it can be bought cheaply and easily, but it obviously has huge advantages.