Mistakes are inevitable. So, whether you are a doctor with years of experience, a business guru, or a celebrity fitness trainer, there is a slim possibility that you may make a mistake, miscalculate, omit important details that may hurt, cause serious damage, or negatively affect the lives of your clients.
When this happens, legal actions are likely going to be taken against you. Covering the compensation and legal cost is going to be the least of your problem if you don’t have some sort of protection or safety net that prevents you from hitting rock bottom.
Of course, there are tons of ways you can protect yourself and your business from something like this, but the most effective, reliable, and trusted of them is professional indemnity insurance at Allegiance Pte Ltd. Want to find what it’s all about and why you should opt for it? If yes, stick around, as we will be dissecting it, to help you understand how it works and what it protects against.
The following article by Markeluk is a simple guide that contains basically everything you need to know about PI insurance.
Professional indemnity insurance explained – a simple guide to PI insurance
Professional indemnity insurance, often referred to as professional liability insurance or PI insurance, covers legal costs and expenses incurred in your defense, as well as any damages or costs that may be awarded if you are alleged to have provided inadequate advice. Read more here.
You likely now know how professional indemnity insurance works. You also now know that the following should opt for it- designers, teachers, IT professionals, business management consultants, Technical contractors, and recruitment consultants, just to name a few. But do you know how much it will cost you to get PI insurance? Read the next article carefully to find the answer.
The following article by Insureon unveils how much it costs to get Professional liability insurance.
How Much Does Professional Liability Insurance Cost?
In 2017, we analyzed data from more than 18,000 businesses with 10 or fewer employees that applied for coverage through Insureon. We found that, regardless of industry or policy limits, the average yearly cost of Professional Liability Insurance for a small business is $1,735.60. The median yearly cost is $920.Read more here.
You likely now know that it is going to cost a small business from $920 to $1,735. You also now know that factors like the type of business and the amount of coverage determines the price. This means that if you are in a lucrative industry and you want full protection, you are likely going to splash a lot of cash. Before making a final decision, you must have an in-depth understanding of how it works.
The following article by Wikipedia Contains everything you need to know about professional insurance.
Professional liability insurance
Professional liability insurance (PLI), also called professional indemnity insurance (PII), but more commonly known as errors & omissions (E&O) in the US, is a form of liability insurance which helps protect professional through advice- and service. Read more here.
You likely now know how Professional liability insurance help protect professionals from bearing damages or negligence claims made by a customer. You also now have a clear picture of the amount of protection it offers, and some important terms and details you must keep in mind before opting for it.
Final note
Miscalculations, errors, and blunders are inevitable in business. Even if you are super intelligent or tech-savvy, there is still a chance that you may make a mistake that may cause losses to your clients.
The best and most effective way to protect your business is by opting for PL insurance. If you have one, you will be protected and won’t have to worry when things don’t go according to plan.
As you likely now know, PL insurance is great and can prevent you from falling below the point of no return. So, if you are a professional and you don’t have it, you not just missing out, but also putting your business and profession at risk.