Reassessing Your Professional Indemnity Insurance Requirements

When any form of insurance is bought, whether it is for a business or for personal cover, it is important to carefully assess how much cover your business and circumstances will need. This will be different for all businesses, and when it comes to professional indemnity insurance, it can be difficult to reliably know how much coverage is the right amount. One way of deciding how much cover your particular business needs is to think about the worst possible outcome of a reach and try to imagine the financial implications on your firm if it were to come about. From there you can begin to calculate the amount you will need to keep your business stable and your employees protected. To help do this it is integral that you understand your clients and their financial power. Are they in a position to hire top lawyers and do they also have a lot to lose if an issue were to arise? How much could you possibly stand to lose if a claim were brought against you? The other matter to weigh up is the likely cost of legal fees you might face without insurance, should you need to defend yourself. This varies from industry to industry, but bear in mind that costs tend to go up across the board for issues that are complex to resolve.