Professional Indemnity Insurance for consultants protects your business from legal liability while providing services to clients
This type of insurance will cover:
1. Lawyer fees to defend your company from claims of professional negligence
2. Legal damages awarded due to such lawsuits (covers damages and settlements)
This type of insurance is critical if you are in the service industry. If you made any slip-ups while serving your clients, or caused damage or injury from your services, your clients can undoubtedly file civil lawsuits against you, demanding you pay compensation.
- Example Claims:
An architect makes errors while drawing up building plans. These errors cause building faults, and delays in the construction project. The client sues the architect for $500,000 in damages.
- A nail salon, performing manicures, accidentally causes infections in several clients’ fingernails. The clients collectively file $100,000 in civil suits for negligence, and personal injury.
Unless you have massive amounts of cash to pay for lawyer fees and legal damages, it is very beneficial to have a Professional Indemnity policy that will protect you from expensive litigation.