Getting the best insurance coverage is crucial to mitigate the potential risks that constantly threaten your business. As we have previously discussed the importance of cyber risk insurance due to the workplace going digital, it is key to understand that some companies require a special type of coverage to protect their employers’ liability.
Indeed, investment firms are conducting risky activities due to the inherent nature of their business. Dramatic scenarios are more likely to unfold in the investment industry than in companies where large sums are being routinely traded. This can be amplified during troubled economic times where a mistake, or slip-up could cost clients a lot of money.
Thus, covering your company with professional indemnity insurance will insure you against the risk of providing investment advice during an unstable economic climate. Besides, it may also provide peace of mind for your clients. In this article, we will further detail the role of professional indemnity insurance and why it is relevant to your business. Moreover, you may always contact BLACAZ for a tailored assistance when it comes to this type of insurance.
What is a Professional Indemnity Insurance?
This type of insurance protects professionals from carrying the cost of defending against a negligence claim made by a client. It also covers compensation owed to the client to correct such negligence. In short, this insurance protects you or a member of your team from potential mistakes and restricts your legal liabilities.
Professional Indemnity Insurance helps mitigating unwanted breach of professional duty. It also acts as a protection against various types of losses such as loss of documents, data, goods or money.
Let’s imagine that you have an employee working for your investment firm. This employee mistakenly sent a client’s information to the wrong person. The client decides to take legal action against your company for breach of confidentiality.
In this case, professional indemnity insurance will come into play and cover costs and expenses incurred. It will also cover legal costs and expenses that may sometimes be extremely high.
Thus, what is also referred as professional liability insurance is a safeguard to a negligent act error or omission. Moreover, it is advised by the Monetary Authority of Singapore that all investment firms must have an appropriate professional indemnity cover.
Professional Indemnity Insurance is often advised for advice or services businesses. This can apply to companies dealing with financial services, financial advisors, real estate, healthcare professionals amongst many others. Furthermore, other types of companies may still benefit from such coverage. A media company needs coverage for unintended breach of confidentiality or inadvertent infringement of intellectual property rights.
Managers working on clients’ projects need protection against an incorrect advice or breach of contract. In short, various businesses should take advantage of this type of insurance. It helps your business look more professional as well as provide a peace of mind for your team and clients.
How much does it cost?
The cost to a professional indemnity insurance cover varies depending on several factors. Such factors include: the type of business, the industry and the degree of coverage you desire. It is difficult to determine the cost for this insurance. Thus, we advise you to contact us to get an assessment on the insurance needed for your particular business.
BLACAZ and professional indemnity insurance
Since 2014, BLACAZ has helped its members navigate the complex insurance industry, enabling them to make the right choices. Based in Singapore, the company offers a professional service and solutions for corporations and individuals internationally in their insurance portfolio audit, structuring and management. It is committed to securing the most competitive and viable insurance options for our members. We partner with them to find suitable solutions for their current needs and future plans.
Professional indemnity insurance is no exception to the rule. BLACAZ has been dealing with this type of insurance for many years and can guide your research effectively.
Contact us today so we can answer all your questions regarding professional indemnity insurance and guide you through the insuring process. While mistakes happen, the adequate coverage will offset potential financial loss and ensure the long-term success of your enterprise.