PROFESSIONAL INDEMNITY INSURANCE: Be Aware Of Your Duty Of Care

If you're in the business of providing professionalpoint of view, as a freelancer or a small consultancy,
advice or services, you owe a legal duty of care tothat will only add to your problems if you don't have
your clients. It means, in practice, that if as a resultany pi insurance. Why? Because the legal costs you'll
of something you do (or fail to do) in yourincur in seeking to defend yourself could be ruinously
professional capacity the client suffers a financial loss,expensive. And, much as you might want to, you
you are liable for that loss. And it's this concept of acan't just ignore it if a claim is brought against you.
duty of care that makes professional indemnityThe only alternative you have to defending yourself
insurance so important.is to admit liability. And that, if you don't have
In today's litigious business world, if something goesprofessional indemnity cover, could lead straight to
wrong, there's an instinctive response to findyou having to pay out an even more ruinously
someone external to blame and to make thatexpensive sum in compensation.
someone pay. And increasingly, the mechanism forFor large organizations, recourse to the law is a
achieving that is to allege negligence or, in otherrelatively easy option. For you and you business it
words, a failure to provide that all-important duty ofcould be a cost too far. So make sure you have the
care.indemnity insurance you need to protect yourself.
Of course, it can be difficult to prove. But from your