We all make mistakes in life. It’s part of makes us human. But when it comes to making a mistake in our employer’s name, it can cost the company thousands of pounds. Even if the mistake is as small as losing a laptop, studies show that it can cost more than £34,000 in loss. This is primarily due to confidential client information being lost, not the cost of the equipment itself.
Clients put trust in a company to make sure their information remains safe while being accessible by the company. If something that holds their information is lost or damaged beyond repair, the possibility of your client experiencing a loss is extremely high. Small problems can lead to large losses for the company when professionals make mistakes, as professionals are the ones who are supposed to be more put together than the client in terms of business strategy.
Professional Indemnity Insurance
Thankfully, there are ways to take the initiative and prevent these losses from pulling your company under. With professional indemnity insurance, you’re able to protect your company up to a certain amount, which makes you look prepared and secure to clients and other employees. Instead of an insurance company promising everything under one umbrella term, there are specifics you can add onto your plan so you can make sure you’re paying for what you need.
Insurance can include packages that have breach of confidentiality and defamation protection, breach of copyright protection, loss of documents protection, and even injury protection. When it comes to monetary losses due to legal issues, professional indemnity insurance can cover fees and compensation payments. If you’re taken to court over something you wrote or said, indemnity insurance can protect your company from compensation claims.
Sometimes former employees aren’t the most honest and maybe that’s what got them fired. To prevent your company from taking a blow due to their dishonesty, professional indemnity insurance can also protect you from the dishonesty of employees by covering legal and compensation costs. Civil liability is something to always have covered when tailoring the perfect professional insurance package for your business.
When to Know If You Need Insurance
While the above sounds like a reliable insurance package, you may be wondering if your business truly needs a package like this. If your company provides consultancy of any kind, professional indemnity insurance is something you should inquire about immediately.
Often times, companies and clients will insist that you have it in order to work for them. The handling of personal and confidential information is extremely important and a blanket of security is necessary for signing clients on. For those who work in designing, planning, or calculating, this type of insurance is extremely crucial in protecting your company from human error. Investing in such will protect your company’s finances and prevent you from going under due to a faulty task or compensation claim in court.