Professional liability insurance is the best way to safeguard your business. If you are self-employed and are offering professional advices or services, you need professional liability insurance coverage in your business insurance.
The self-employed persons can be at risk in any of the below situations:
- Loss or destruction of data
- Infringement of intellectual property
- Malpractices made when handling clients in legal
- Theft of property or money from a client
Professional liability insurance is required for a self-employed rather than an employee. Because it is believed that more risk is associated to a self employed person in offering professional services, rather than an employed person. It helps in protecting the financial security of business and also professional reputation by making sure that the self-employed person is fully covered with a sufficient professional indemnity cover.
The professional liability cover does not include criminal damage or prosecution, or a wide range of potential liabilities under civil law. These are covered in other forms of insurance. Even if a spurious claim is made against you, the cost involved against your reputation could be difficult to meet.
In a professional liability insurance, if no claims have yet been made against you then you can backdate your business insurance. This process is also called as a retroactive dating. Always keep in mind that the professional indemnity insurance should be tenured of a long duration. This will ensure that you will work for yourself, taking care that the business does not fail as you wish to pay for the best and most comprehensive cover you can afford.