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What is professional indemnity insurance?

October 13, 2017

Professional indemnity insurance protects you against claims of professional negligence made by dissatisfied customers. These could be complaints that you have offered poor advice, or made a mistake in your service which impacts your client. Professional indemnity insurance can also protect against claims for loss of documents or client data, defamation or libel, and unintentional breaches of contract, copyright or confidentiality.

Professional indemnity insurance is important for most people in business in Dubai and the wider UAE, but it is vital for those that provide advice for a living. Should a customer allege that you have provided inadequate or inaccurate advice as part of your service, you may be required to defend yourself in court and pay compensation to the accusing party. Any such claim, regardless of the size of your business, can have huge financial consequences. Even if you are entirely innocent of such claims, the legal process can be lengthy and expensive. That’s where professional indemnity insurance comes in, to protect you from hefty financial losses.

Do I need personal indemnity insurance in Dubai, UAE?

If you provide a professional service, handle client data, work under an NDA, or are responsible for intellectual property in Dubai, UAE, then the answer is likely yes. Ultimately, when you run your own business, the responsibility of providing a quality and accurate service is firmly at your door. This can be daunting without adequate protections in place.

Often thought to be solely for those in the legal or accountancy professions, personal indemnity insurance is actually of vital importance to workers in a wide range of industries including consultants, IT professionals, coaches or trainers, teachers and private tutors, and designers. In some cases, the decision to take out a personal indemnity policy may be out of your hands. Many businesses insist that those they work with have adequate cover in place.

But regardless of the nature of your business or the industry you are in, professional indemnity insurance can provide you with the peace of mind you need to work confidently, to the best of your ability. You may have strong bonds with your clients, but it is amazing the level of strain a mistake or miscommunication can place on a business relationship. That’s why, if you provide advice or services to businesses or individuals, you should seriously consider taking out a professional indemnity insurance policy.

What level of cover do I need?

The level of professional indemnity insurance you require will depend on your specific business circumstances – factors like your business activity, your clients’ industries and so in. In some cases, the minimum level of cover required may be specified to you by a client or industry body

If this is not the case, consider the worst-case scenario and protect against that. If you were to make a mistake in your service, that severely impacted a client, what would be the cost of putting it right? When making your estimate, you should include potential legal fees, as well as any losses that your client could suffer as a result of your error. Keep in mind that legal fees – even if you are not at fault – can stack up incredibly quickly. Corporate court cases can also drag on for a long time, so you could face having to pay legal bills for years rather than months.

Professional Indemnity Insurance can help protect you from bearing the brunt of the total cost of any claims of this nature, allowing you to focus on running your business with total peace of mind.

Why choose Lifecare – Dubai’s independent insurance agents?

At Lifecare, we work for you. Our expert team, based in Dubai, UAE, are on hand to find you the right cover – whether you are looking to protect your health, your business, or your assets.

As well as finding you the best price from hundreds of the best insurers, we also offer a unique and personalised service to bring you cover that counts, at a premium you’re prepared to pay. We’re on hand in the difficult times too, managing the entire claim process for every one of our clients.

Our team of over 100 insurance professionals look after individuals, families and companies, and make us the leading independent insurance agents in the region. In the 20 years since our launch, we’re proud to have helped over 25,000 people and more than 1,000 businesses.

So, why choose Lifecare for your personal indemnity insurance?  Quite simply, because we’re not like the rest. We understand that life is full of risks – and unexpected events can dramatically impact our lives and our businesses.

We’ll help you choose the types of risks you wish to cover, by choosing the right kind of policy, and with the benefits you most need. That’s why, while our insurance products won’t protect you from unexpected events, they will protect you from financial loss.

If you’re interested in finding out more on the insurance services Lifecare provides, get in touch with us today via the following form.