England – 09/03/2012 – In today’s increasingly litigious environment professional indemnity cover is a must have
Officially, only a small percentage of UK businesses need to take out professional indemnity cover. Professionals such as lawyers, financial advisors, architects and accountants are required by law to take out this kind of insurance to carry out business in the UK. This is so that should a client following their advice end up losing money they can claim for their losses from the professional who gave them that advice. The fact that the professional has insurance ensures that the person who has lost money is paid compensation for their losses.
The list of professionals who are required by law to have this kind of indemnity cover is quite long. However, it is by no means an exhaustive list. Many other professionals could benefit from having this kind of insurance. Anyone who offers advice to people as part of the service they provide could benefit from taking out this type of insurance.
Retroactive professional indemnity cover
Many firms who are buying this kind of cover are being offered retroactive policies too. These policies cost more, but are designed to cover you for mistakes you may have made on earlier jobs. It is not unheard of for people to claim for problems arising from taking your advice years earlier. For example, someone who lost their pension pot after taking advice from a financial advisor may not realise there is a problem until they come to actually start claiming their pension. At this point, they may decide to sue the financial advisor who advised them about which type of pension to buy.
Hensure have been selling professional indemnity cover for over 35 years now and have seen demand for this kind of insurance rise drastically. People from all professions are waking up to the fact that they are operating in an increasingly litigious environment. As a result, they are seeking to protect themselves by taking out this kind of insurance. Hensure, already insure professionals from 450 different professions and expect that list to continue to grow.
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