Professional indemnity insurance involves four basic areas: worker’s comp, general indemnity, property and casualty insurance and umbrella coverage. However, you might not feel that these types of insurance coverage are enough for you as a professional individual or for your professional company. In that case, you can choose to get additional coverage types such as business interruption protections and life and disability insurance for yourself and all of your company’s employees.
Insurance for professional indemnity is especially important because many states require businesses to have it in place, at least to some extent, in order to be considered legitimate professional entities.Worker’s compensation is a valuable coverage that you should seriously consider getting to protect your business from high bills involving injuries or deaths in your work force. While medical costs and wage reimbursements frequently come to mind, a third insurance option is also viable: employment practices insurance, which protects you against lawsuits that may arise from sexual harassment or discrimination claims.
Since insurance agents don’t always have the latest figures at hand, you should check with the local or state offices to find out exactly what levels of professional insurance are required where you operate your business.
General professional indemnity coverage will protect your business against workplace accidents and injuries, whether suffered by employees, clients or visitors. Of course, the coverage will not apply if you are at fault for the accident through poor craftsmanship of products or other negligent professional practices.
Shop around and get quotes from various insurance providers before you settle on the one that seems best for your professional needs.