Some professionals may not take full advantage of their professional indemnity cover because those professionals may be unaware of some of the additional risks which are often included in the policy they purchased. This article discusses some of those risks which could be included in your policy.
When Cash Goes Missing
Some insurers include wording in their professional indemnity (PI) policy to the effect that the insured company or person is covered in case some money is found missing. This can take two common forms. The first is when an employee actually steals from you. The second form is when an employee bills a client without your knowledge and keeps the money for himself or herself. Find out whether your PI insurance policy covers such a situation and file a claim once that risk occurs.
When the Media Learns of Claims Against You
The reputation of your business can suffer if a claim against you (genuine or false) reaches the media. That bad publicity can harm the goodwill which your company was enjoying among its clients and the public. Some insurers can provide public relations help to rebuild the reputation of their clients who are holders of professional indemnity insurance policies. Find out whether such a clause exists in the PI policy you acquired, and utilise such PR expertise if it is available to you.
It is easy for any business to send an email to someone who shouldn't have received the information in that email. For example, you could be sending an email to a group of clients, and someone who shouldn't be on that list ends up receiving that email as well. Alternatively, you could be discussing the contract of a client, and someone overhears what you are discussing and uses that information against your client. Such unintended communication may be covered by your PI policy. Go over the policy documents and confirm if that is the case.
When Clients Decline to Pay
Some clients may decline to pay for your goods and services because they weren't satisfied with the quality of those products or services. Suing the client for the amount due can trigger a counterclaim from that client. Your legal battle can also result in unwanted media attention. Some professional indemnity insurance providers cover such situations and reimburse you what the client declined to pay so that you can retain the client and avoid having to go to court.
As you can see, professional indemnity insurance can cover risks which go beyond the obvious professional mistakes that you may make as you go about your work. Discuss every detail in your PI cover with your business insurance agent or the insurance company so that you never fail to file a claim when the policy would have covered the risk.