Professional Indemnity Insurance and Quality Risk Management Is Essential for SMEs

Gaining a competitive advantage can remain the major focus for SME professionals who protect themselves appropriately. Risk management can save a business a lot of hassle and finance, whereas professional indemnity (PI) cover can cushion the blow of the sometimes unavoidable issues and incidents.
Health and safety protocol, regular inspections, training programmes for staff - risk management can seem like a complex process. All managers need to consider risk management as a fundamental component to the day to day running of their business. If it is neglected, insurance premiums can rise and employers can be held liable for all kinds of claims - claims which are on the rise anyway.
The Insurance Times recommend brokers' assistance can help when placing cover. Brokers have experience in dealing with multiple organisations and therefore also have the ability to level SME risk management against similar, or even larger, companies across various industries.
Service providing organisations can only control so much of their business though and professional indemnity insurance can protect them from claims of negligence against their duty. A lot of these claims can be false but with the right cover, SMEs can stay focused on their business objective, rather than sparing more time and budget than they need to, going through the legalities of a claim.
If a customer or client believes they have incurred a loss or damage due to the negligence of another party, they are within their rights to claim. PI insurance should protect the accused, whether they are guilty of negligence or not, for any losses up to the settled insurance amount.
However, some policies come with limited cover and expensive excess payments. The positive side is that brokers are experts in the field of pi insurance and can take a bespoke order from a SME and find the right insurance package to match requests exactly. It saves time and is a great way to make sure that you get the exact coverage that you need and are appropriate for your circumstances and business concerns.
Different SMEs will have different vulnerabilities when it comes to legal action against them. Brokers specialise in finding heavily armoured PI insurance policies for all types of ventures, making it very difficult for plaintiffs to penetrate. Should an accuser make a legitimate claim, the broker-sourced policy will cover the legal expenses and save professionals from sacrificing their whole operation to deal with unfortunate and unexpected incidents.

Martyn Piper is an expert on professional indemnity insurance and after working within the industry for many years he now writes and shares some of that wealth of knowledge on a variety of insurance products such as pi insurance.

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