What exactly is indemnity insurance?

Do live in Singapore? Are you a professional who offers specialized services to people? If yes, you need to read this article carefully, as it contains intricate details about a type of insurance that can protect you when things go south.

Whether you are an accountant, lawyer, business strategist, weight loss coach, doctor, or you offer some sort of services to people, you need to be protected. Why you ask? Well, the reason for this is because things may not go the way you planned and professional indemnity protection is required.

For example, if you are a business strategist, and offer advice to a promising startup to help it increase its customers and revenue. Unfortunately, your advice didn’t yield positive results. In fact, the startup lost thousands of dollars because they followed the strategies you provided. When this happens, you are likely going to be sued and may end up paying thousands of hard-earned dollars to bail yourself out of the hot mess you are in, and in keeping your business afloat.

The following article by Cimaglobal shed light on a special type of insurance that can protect professionals when things don’t go according to plan.

Professional indemnity insurance

As a CIMA Member in Practice (MIP), you must have Professional Indemnity Insurance (PII). Not only is it a mandatory requirement, but it is also in your interests and that of your business to have appropriate levels of Professional Indemnity Insurance. Read more here.

You likely now know a few things about professional indemnity insurance like- who can opt for it and what it protects against. You also now know a thing or two you must keep in mind before opting for it. Before making a final decision, you must consult a professional to help you determine the extent of protection you should opt for.

The following article by Adam Hayes explains how indemnity insurance works and how you can get the most out of it.

Indemnity Insurance

Indemnity insurance is a contractual agreement in which one party guarantees compensation for actual or potential losses or damages sustained by another party. Most commonly, it is an insurance policy designed to protect professionals and business owners when found to be at fault for a specific event, such as misjudgment. Read more here.

You likely know have a clear picture of how liability insurance works, who can opt for it, and how to get the most out of it. You also now know what it covers and doesn’t cover. But do you know what set it apart from liability insurance and other types of insurance out there? Read the following article carefully to find out more.

The following article by Business shed light on the difference between liability insurance and professional insurance.

Liability insurance and professional indemnity

If you own a business, you can be liable for damages or injuries to another person or property. Though liability insurance is mostly optional, you might want to consider it for your business if the likelihood of legal action is high. Read more here.

You surely now know that public liability insurance protects against financial risk from property damage, consequential loss, death, and injury of a client, and so on. You also now know that professional indemnity insurance help covers the cost of legal action that may be due to a breach of contract, mistakes, and miscalculations.

Final note

Keeping business or a career afloat in this ever-changing economy is no walk in the park. Even if you do your best to satisfy the needs of your customers and offer the best of services, there is no guarantee that your business will thrive.

The reason for this is that certain issues like giving poor advice, miscalculations, medical malpractice, and so on can derail you from your goal and drag you into a bottomless abyss. If your business isn’t protected, you are finished.

However, if you have professional labiality insurance, you can be confident that you will be able to come out of certain situations with a smile on your face.