Professional indemnity insurance is also known by some insurers as professional liability insurance. This type of insurance policy is designed to cover the costs of defending your business, in the unfortunate event that a claim is made against you.
There are many different reasons why a claim may be made against a recruitment business. For instance, perhaps the advice provided to a client was poor – resulting in some sort of loss to the client. Or maybe someone inadvertently loses important documents or data belonging to the client. These are just a couple out of many reasons why claims may be made against your business. Despite your best intentions, things can go wrong, so having professional indemnity insurance can help protect yourself in these situations. Without insurance, you may be liable to pay a claim from your own coffers.
Having a professional indemnity insurance policy from a company like Endsleigh should be essential for any professional recruitment business. Not only can it help protect the business, but the fact that a business has invested in this type of insurance can be a marketing tool that sets your business apart from others who do not have this insurance. Most of your clients will expect that if you make an error, you will try to fix it. Having professional liability insurance can indicate that you will act in good faith.
Anyone who performs some level of professional work, whether in the recruitment sector or not, could possibly be liable for their services. Sadly, the risk of a business being sued is increasing in recent years and it doesn’t matter if your business is full-time, part-time or even provides free services; you can be a target for a compensation claim in the event that something goes awry.
Having professional indemnity insurance coverage will prove compensation if an error is made. The insurance will also help reimburse any legal expenses that may be accrued due to negligence.
