Why Do Marketing Consultants need Professional Indemnity Insurance?
Your clients rely on you for your marketing expertise and advice to help increase their leads and increase their profits. But when things don’t go to plan and accusations fly, you need to have protection in place to look after your business’s finances and reputation. This is where investing in the right business insurances can save your business when unexpected incidents occur.
In this article we explore how Professional Indemnity insurance* and other business insurances can help safeguard your marketing consultancy business.
Professional Indemnity* Explained
Professional Indemnity (also known as PI) insurance is an important form of protection for businesses that provide specialist services or professional advice, like marketing consultants. It is designed to respond to claims against your business for losses as a result of actual or alleged negligent acts or omissions in the provision of your professional service or advice.
Professional Indemnity Insurance will also assist with the legal costs associated with responding to or managing claims which are covered by the policy.
Why is it important?
No matter how much care you take when giving advice, the truth is you are human and accidental mistakes can happen. A claim for negligence by a client, however, can have a significant impact upon your business, regardless if the claim is actual or alleged.
This is where Professional Indemnity insurance can help, by providing the financial support to cover not only awards of compensation, but also the associated legal and court costs to defend your business. It can be a cost that is overlooked by many small businesses, who underestimate how much of a burden a claim can be to their business. Not only is there the financial side of things, but also the time that is involved in a court case which can proceed for months if not years.
Having Professional Indemnity insurance means you can focus on getting back to business doing what you do best without worry and only limited disruption to your business.
Is your reputation vital to your business?
One of the most valuable aspects of your marketing consultancy business is its reputation, something that you have worked long and hard at building. Your clients come to you for a reason– they put their trust in your marketing advice, solutions and plans. As a marketing professional you understand the importance of brand and reputation, something which is vital to protect.
Having the financial support of Professional Indemnity insurance means you can fight for your business in defending claims, with the legal support you require. Being able to support your reputation through this process offers peace of mind and reassurance.
Other business insurance options to consider
Public Liability insurance*
If you have a home-office where clients come to visit you or you’re out on the road meeting them, you may need to consider Public Liability insurance. Public Liability insurance is designed to provide protection for you and your business in the event a customer, supplier or a member of the public are injured (and not covered by the Accident Compensation Corporation (ACC) or sustain property damage as a result of your negligent business activities and bring a claim against you.
Contents, Building and Business Interruption insurance*
You may also want to look at protecting your business assets. The last thing you need is to be faced with a bill for your out of pocket expenses when disaster strikes. Consider cover for your business premises (if you own the building), your business contents both in the office and on the road, and Business Interruption to help you get back on your feet.
Cyber Liability insurance*
When you are dealing with confidential client data, you need to assess the consequences if this data was compromised. Cyber Liability insurance is designed to help protect you from claims and support your profitability in the event of a cyber breach or attack. Costs associated with defending a cyber claim are also covered. Examples of the types of risks Cyber Liability insurance can assist with are inadvertent loss or release of customer personal information, cyber-crime, cyber extortion/ransomware and business interruption due to a cyber event.
Insuring your marketing consultancy business
Arranging the appropriate types of business insurance to protect your marketing consultancy business and its unique risks doesn’t need to be difficult. BizCover provides a jargon-free experience that provides you with quotes in minutes from some of New Zealand’s leading insurers, so you can choose the cover you want in a couple of mouse clicks.