One risk management and commercial insurance broker firm recently warned that not only is professional indemnity insurance as important as it has ever been, it is poised to become even more important than ever.
Stating that clients have never been more likely to file professional liability insurance claims if things go awry, Garratts Insurance Brokers recently remarked that companies may struggle to win business without professional indemnity insurance.
It is traditional for business liability insurance claims to increase during an economic downturn, according to Garratts. The broker said that even unfounded allegations can, in some cases, end up taking up valuable time and resources if they need to be repudiated properly. The costs of such a defence has the potential of completely undermining the finances of a firm, Garratts added.
The insurance brokers advise that any policy worth its salt should cover the cost of defending any allegations or claims. It should also be tailored to specifically meet the needs of each individual client.
Dating back to 1877, Garrats Insurance Brokers has been providing insurance broking support for businesses in the UK for 130 years from its offices in Preston. The Brokers have developed relationships with several insurance companies on the local, national, and international level, and continue to forge new associations and work towards new developments not only within the UK but also throughout the Euro zone in such locations as the Netherlands, Scandinavia, Spain, and France.
Industry experts agree that having adequate professional indemnity insurance is one of the most important tools to have in the UK’s current post-recession economic climate. Experts recommend that businesses ensure they have proper levels of cover to prevent court costs that could effectively cripple them.