Professional Indemnity Insurance (PII) can play a key role in the risk management strategies of law firms, financially protecting them against legal claims made by their clients.
But what areas can it cover, and what should businesses look for when searching for a policy?
The thinking behind PII
No matter how hard they try to avoid errors when dealing with clients, companies might still have legal claims to fight if issues with their work arise.
PII is a form of insurance that seeks to protect firms from such claims.
Specifically, it applies to companies which deliver professional services to business clients.
It can prove invaluable in instances where businesses are accused of making costly mistakes, being negligent, or delivering inaccurate advice.
PII policies can also come in handy if questions arise over the use of a client's data, or their intellectual property.Key benefits
By purchasing year-round PII cover, businesses can:
- Meet the costs of any legal cases which are brought against them - whether they are in the wrong or not
- Gain peace of mind, ensuring fears of possible legal action do not hold them back
- Reassure their clients that they take their legal duties seriously
Selecting the right policy
Rather than rushing, it is important that businesses take the time to make the right decision when purchasing a PII policy.
They need to think about whether a policy suits their specific areas of interest, instead of simply signing up for the cheapest deal.
Careful consideration also needs to be given to the amount of cover they actually require, and whether potential legal costs could run into the thousands or even millions of pounds.
Find out more about the Wesleyan Professional Indemnity service.
Copyright Press Association 2015