How Important is Professional Indemnity Insurance to UK Businesses?
The most vital part of any successful business is the people. Without them, the work would abruptly come to a halt.So it’s incredibly important to make sure all your employees are protected as much as possible. There are so many different insurances you can invest in for your business, it can be overwhelming. For now let’s focus on Professional Indemnity Insurance, otherwise known as PI Insurance.
What is Professional Indemnity Insurance?
First things first, what exactly is PI Insurance? It protects employees against client or third party claims, if they’re believed to have been neglectful or made a mistake within their line of work. It will help cover your legal costs while dealing with the claims.
Legal Requirement
For certain professions it is required by law to have PI Insurance. This includes architects, engineers and surveyors because these professions involve high-involvement with clients, and high-risks if something were to go wrong. It makes sense that it’s a legal requirement for both employee and client to be protected within these lines of work. There are plenty of online resources where you can find out more.
Reassure Clients
Generally speaking, PI Insurance is not compulsory (apart from the professions discussed earlier.) There are still plenty of businesses which choose to invest in it, such as advertising, IT and PR. This is because it can reassure the clients, knowing they have a safety net if something goes wrong with the services provided. You’ll both feel better knowing you can get on with the job at hand, and you’re fully protected in whatever circumstance.
Reassure Employees
PI Insurance can also reassure your colleagues, as well as your clients. You may be worried if you get the insurance, the people you work with will think you don’t trust them. Just because you’ve got insurance in case of negligence, doesn’t mean you think they’re bound to mess up. At the end of the day you’re all people, mistakes can happen. PI Insurance reassures you’re looking after them, whatever happens.
Stand Out
In the world of business, you want to try and do anything you can to make you stand out from the crowd. Say for instance if you’re going against another business to try and win a new client. They have this insurance policy, which immediately offers peace of mind and you don’t. Who do you think that client is going to pick? Having PI insurance, as well as protecting you, could also mean you gain extra business.