The businesses that usually decide they need professional indemnity insurance (often referred to as professional liability insurance or PI insurance) are those that give advice, offer a professional service, or handle client data or intellectual property. It’s therefore important for many business types.
Unlike general liability insurance (which only comes into play when there is bodily injury or damage to property), professional indemnity insurance cover fills in the gaps where legal claims can arise that do not involve anyone getting hurt or any property being harmed. Professional Indemnity Insurance usually covers negligence, misrepresentation or the delivery of advice that is wrong or inaccurate. It is an integral part of coverage when you are looking at starting a business here in Singapore. Give us a call today and have a chat to our business insurance team if you would like to discuss this further.
A great way of summarizing it can be found in our blog here ‘9 Types of Business Insurance A Small Business Should Have’. If your business provides a service, gives advice or consults, Professional Indemnity Insurance would be an essential part of your business insurance protection.
Some good examples of these professions in the commercial sector could be anyone that is a health professional, a real estate agent, an accountant, in construction, Management consultancy or Law firms. You will provide these services to a customer for an agreed upon fee. Because your customers are paying, it is only fair that they have certain expectations of the work that you are to provide. Unfortunately, sometimes these expectations are not met. This can lead to extreme dissatisfaction on behalf of the client, and sometimes this can result in legal action. Professional Indemnity Insurance covers the legal expense that may arise if a claim is brought against your business for alleged negligent service or advice. This can also include the compensation of any costs if your customers incur any financial losses due to an error or misrepresentation on your part.
For specific sector such as:
We are able to design tailor-made solutions regarding any insurance that is needed and specific risks on these sectors.
This can be a bit tricky to understand. At Expat Insurance; we design professional indemnity insurance cover levels to fit your business and your industry. It can be difficult to decide what level of cover you need, so a good place to start is to give us a call and we can guide you through the process.
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