Business Insurance – Why?
Consumer awareness is rising world wide. Courts are becoming more lenient towards the rights of the consumers. Increased quality consciousness among customers has catalyzed the financial loss of companies in case of any error, mistake, copyright violation, breach of contract or data loss. This has accelerated the growth of indemnity insurance policies. Indemnity insurance is liability insurance and indemnifies your business against any omission, neglect, breach of contract unintentional infringement of copyrights etc. that can create a damage( financial or image) to the client.
The best part of the indemnity insurance policies are that they can fit into any business and profession. And, the scope of coverage varies from business to business and profession to profession. IT to medicine, accounting to law- what ever may be the industry your business is serving, indemnity insurance can help you to minimize your risk.
There is no fixed limit of the indemnity insurance. The coverage amount for which you should go for depends on your perception of risk and the area of operations. Premium of the policy varies between 0.2%-2.5percent of the insured amount. The premium is decided after analyzing the type of coverage and the quality of risk.
Indemnity insurance is a mean to counter unforeseen events, not a tool to protect against any deliberate act or willful neglect. They will not offer protection to your business for the mistakes done under the influence of intoxicants. Violation of law and any other criminal act are also not covered under indemnity insurance policies. They also do not protect you against fines, punitive damages, or third party public liability. Buying these policies with prior knowledge of a claim also does not help you. This will only lead to rebuttal of the claim.
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For further information on indemnity insurance and freelance insurance, please contact Coulson Pritchard Associates directly on 01480 470220 or visit at www.professionalindemnityinsurance.co.uk
