Professional Indemnity Insurance for accountants 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 very important if you operate any kind of service business. If you make an error while serving clients, or your service causes damage or injury, your clients can certainly 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 large 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.