A Quick Look at Indemnity Insurance
Indemnity insurance is intended to provide protection in the event that you have provided incorrect services to a client. Examples can be faulty workmanship when building a home, prescribing the wrong medication for a certain condition or improperly designing a website which resulted in a massive loss of sales. Let us look at the specifics of this programme as well as examine a handful of the top providers currently serving the United Kingdom
Indemnity Insurance Explained
The first thing to appreciate is that most plans cover for a wide range of scenarios which may or many not be within your control. Some common issues can include:
- Accidental breach of copyright
- Loss or corruption of data
- Libel and defamation
- Loss of product or money (both on the end of the client).
Keep in mind that many business sectors will require this type of insurance to be present before beginning operations. Even if it is not legally mandatory under some circumstances, it is always wise to choose a basic policy. If not, you may very well find that you will have to cover massive court costs. Should a settlement be in the favour of the plaintiff, further expenses will occur.
If you require this type of insurance for a certain contract, the minimum allowable limits will normally be stated beforehand. The client could also request that you purchase a specific amount.
It is always wise to consider what is termed the worst-case-scenario for your business. In other words, imagine what could possibly go wrong and try to estimate what this would cost you and your firm. If you find that such expenses exceed your present capital limitations, it is a good idea to purchase indemnity insurance.
Some of the Top Providers within the United Kingdom
Although there are countless firms which offer this type of protection, not all are created equally. Let us look at some of the top providers as well as the unique benefits that each offers. The best in the business are:
- AXA Professional Indemnity Insurance
- Insure My Business
- MORE TH>N Professional Indemnity Insurance
Hiscox was voted the number-one professional indemnity insurance provider in 2015. This firm offers coverage limits of £10,000,000 pounds. This can be ideal for larger firms and organisations.
AXA Professional Indemnity Insurance is a well-known name in the industry, and for good reason.- AX boasts levels up to £5,000,000 pounds and it is able to offer plans for both public and private liability.
Insure My Business is rather new in the industry and yet, it continues to rank quite high. Insure My Business provides £1,000,000 pounds for public liability claims and up to £ 10,000,000 pounds for private issues. Note that this is only for professionals.
MORE TH>N Professional Indemnity Insurance can settle claims of up to £ 5,000,000 pounds. They cover both public and private indemnity situations.