Consider
taking out professional indemnity insurance if you are
in the business of selling your knowledge or skills
(e.g. lawyer, accountant
or financial adviser, architects,
consultants and designers). If you have made mistakes or
are found to have been negligent leading ultimately to damage
to client then professional indemnity insurance will take
care of your liabilities.
It
protects your business against compensation sought by
the client including any legal costs involved.
Often there can be a long delay between an event and a subsequent
claim, so must ensure that you are covered both at the time
of the event and when the claim is made.
Incase
you are changing insurers, you will either need to arrange
run off cover or get agreement from your new insurer
to accept new claims for prior incidents.Also, if you plan
to call off your policy when you shut down your business
or retire you may need to arrange "run off" cover
for a period of time afterwards.
You can avoid such claims in the first place by taking care
that your projects are well documented and by mentioning
specific responsibilities in your contracts with clients
from the very beginning.
A
suitably experienced insurance broker specializing in
your area can give you more of such hints.
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