If you have a business that provides advice, knowledge or skills to clients there is a risk that you could be sued by clients who are not satisfied with the work you have done.

If this were take place then it could cripple the company not just because of the legal costs but also with regards to the damage that a loss of reputation could cause.

However, one way of mitigating the crippling costs of being sued is by taking out professional indemnity (PI) insurance. This protects businesses financially in the event of being sued for a professional error, omissions or even professional negligence.

So what firms should take out professional indemnity insurance?

For some professions such as solicitors, financial advisers, accountants, mortgage advisors, architects and insurance brokers it is actually a regulatory requirement to have professional indemnity insurance.

However, that doesn’t mean that it is not useful for other companies to have professional indemnity insurance. PI is designed to cover people who sell their knowledge or skills. Therefore, it is a useful product for a number of businesses including estate agents, PR firms and consultants.

By taking out professional indemnity insurance it means that while a business strives to do its best if the worst was to happen and you are sued by your client the costs of legal fees and compensation are covered. Because, if you were to be sued could you absorb the costs in the business? With professional indemnity insurance you don’t have to worry as you will be covered should the worst happen.

What’s more by having professional indemnity insurance in place it proves to your clients that you are trustworthy. It can also help secure new clients who may insist that you have indemnity insurance in place before starting to do business with you.

If you want professional indemnity insurance then go to Markel Direct Insurance to find the best deal for you.