Entrepreneurs and seasoned business owners alike face a myriad of challenges when running a company.
With all the highs and the lows that come with the rollercoaster experience of building a brand, it’s always in your best interest to make sure you’ve got your bases covered with the proper insurance protection.
One type of coverage that is consistently beneficial for business owners is professional indemnity insurance, also referred to as professional liability insurance or PI insurance.
What is indemnity insurance? Good question! Let’s look at what this type of coverage consists of, as well as why you would be wise to obtain it as an added layer of protection for your business or brand.
The Basics of Indemnity Insurance—and Why You Need It!
Indemnity insurance is basically a supplemental form of liability insurance geared towards professionals in certain industries.
Indemnity insurance covers a wide subset of service providers. Everything from medical or dental indemnity insurance to financial or legal indemnity insurance coverage can be put in place to protect professionals in the event of a malpractice or misjudgment claim.
If a malpractice or misjudgment claim is filed, and a business owner or professional is found to be at fault for a particular event, an indemnity insurance company steps in to cover sustained costs.
Essentially, this type of coverage guarantees compensation for any losses or damages experienced by an indemnity insurance policyholder.
Some industries even require a minimum amount of indemnity insurance to be carried and maintained, including those in the legal and financial services arena (think attorneys, mortgage brokers, insurance agents, etc.).
For those in the medical field, there are indemnity policies for covering medical malpractice and errors and omissions.
Medical professionals carry malpractice coverage to protect themselves against claims arising from alleged mental or physical harm.
Why should you procure indemnity insurance? If you work in one of the aforementioned fields, not only are you required to by law, but you want to ensure your work and business interests are protected if you are found liable for possible negligence or failure to perform as expected or agreed upon.
If your (or your company’s) performance is deemed liable, a solid indemnity insurance policy will protect your business’s financial interests while simultaneously compensating the client for their losses—so, while you hope to avoid these situations, that’s not always possible.
If and when such an incident does arise, you’ll want to have your professional and financial state protected as much as possible.
An increasing number of professionals find themselves purchasing indemnity insurance policies to safeguard their businesses against having to file bankruptcy because of potential civil court claims.
Most indemnity insurance policies also include covering litigation costs, as well as any financial damages that the plaintiff may be awarded in court.
This is an extremely valuable benefit, as court costs can quickly stack up, resulting in potentially devastating financial consequences to a business or firm.
An indemnity insurance policy also includes coverage for court costs, fees, and settlement agreements—which are solely dependent upon the specific terms of each judgment.
In exchange for this comprehensive coverage and compensatory guarantees, of course, the policyholder pays an insurance premium.
Be sure to consult with an insurance agency that is well-versed in indemnity policies and coverage.
Why Alchemy Insurance Agency is Your Go-To Indemnity Insurance Source
For more than 30 years, Alchemy has worked as a critical component of the insurance industry.
By connecting clients directly with the most reputable and trusted providers in the business, Alchemy’s skilled agents take the tedious guesswork out of shopping for and comparing insurance rates across a wide spectrum of coverages.
With Alchemy on your side, you won’t have to spend any more time making countless calls or sending numerous emails to get quotes or compare services from various insurance companies.
Alchemy assesses your budget and needs—and do the heavy lifting for you! You’ll undoubtedly save time, money, and patience when you trust Alchemy to assist you with your indemnity insurance coverage search.
If you’re looking for the perfect Professional Indemnity Insurance coverage to fit your needs and budget, look no further than the team at Alchemy Insurance Agency for guidance.
Alchemy’s network of independent agents work directly with the top brands in the business, matching you with the best price and plan. Let Alchemy do the rate shopping for you!