When your business involves providing professional services and advice to customers, you have to have indemnity insurance. This professional liability cover will work to protect the finances, operations and reputation of your business. The question is how to obtain the best policy among the many different ones available in the market. You should request quotes and compare them based on the following criteria.
Does the indemnity insurance policy protect you from all possible risks, which may make up your professional work? The policy must cover negligence, error and omission. Other items which can be covered include loss of documents, defamation, breach of confidentiality, unintentional infringement of intellectual property rights and employee dishonesty and fraud. It is up to you to decide which ones of these extras will be useful to you, if any. Consider the operations of your business, its size and your management style in order to make the right choice.
The amount of indemnity insurance which you buy must be calculated very carefully. You have to take into account the revenue, profit and net worth of your business. Bigger companies require more cover. You should consider the level of risk associated with your professional service as well. Another important factor is the legal power which your clients can afford to get in case of a dispute. You should also check the average cover amounts in your industry.
Typically, it is always best to get a little bit of extra cover instead of remaining uninsured. You should also confirm that the cover amount per case is sufficient just like the annual cover amount which you will be entitled to. Another thing to watch out for is whether the cover amount includes the legal defense cost. If it does, the actual amount available for compensation will be significantly reduced.
You have to ensure that you will get adequate professional help if the need arises. Look into the customer service of the insurer. They should be quick to process your request and committed to your case. You can readily find out more about this service from business contacts and referees.
You have to ensure that you will get the best legal defense as well. This service is automatically included in every indemnity insurance policy. You should be able to work with a highly experienced legal team with good achievement record.
Finally, you may want to look into the indemnity insurance packages which are specifically designed for your particular occupation. There are ones for medical and legal professionals among others. These are often more comprehensive and cost-efficient as well.