What Does your Professional Indemnity Insurance Do in the Case of a Damage Event?
What does Professional Indemnity Insurance actually do when you report a damage? It pays compensation to injured parties if you have caused damage. But the services provided by Professional Indemnity Insurance cover more than that. You can find out how your insurance can help you in the case of a damage event in our article.
Passive Legal Expenses Insurance: From the Question of Guilt to Compensation for Damages
If you report a damage to exali, the insurer will clarify at its own expense whether you can be held liable. If necessary, the insurer will also cover the costs of legal advice or expert opinions. Two results are possible here:
- The claim is unjustified and will be defended on your behalf at the insurer's expense.
- The claim is justified. The insurer will pay the damage amount.
This passive legal expenses insurance covers you - regardless of the outcome of the damage event.
We have illustrated this process once again using the example of a written warning:
Professional Indemnity Insurance: Prepared in Case of a Damage Event
Every business is subject to its own risks. The possible scenarios of a damage event are just as different. Your Professional Indemnity Insurance will also support you in the following damage situations:
Cyber Attack
In this case, it's not just about potential damage to third parties. In the event of a successful cyberattack, damage to your own systems is also possible. In some cases, the insurer will cover both the amount of damage suffered by the injured party and the costs of restoring your own systems - for example, if the website is changed or blocked.
This article shows how you can protect your business from cyber attacks and why you should still be prepared for an ‘emergency’: Cyber Security for SMEs: How to Achieve Effective Safety Standards.
Data Loss
Even if customer data is lost, the insurer does not limit itself to paying a claim. It also takes care of commissioning specialised experts to recover as much data as possible. This holistic approach is supplemented by the assumption of costs for crisis management and PR advice - in order to minimise the threat of reputational damage.
All information and examples from this article can also be found in a compact summary in this video:
Professional Indemnity Through exali: Always at Your Side
These were just a few examples of how Professional Indemnity Insurance can help you in the case of a damage event. Generally speaking, Professional Indemnity Insurance is not just there to paya certain amount of compensation. It stands by your side from the very beginning and tries to minimise the damage as much as possible in order to achieve the best possible outcome for you.
Vivien Gebhardt is an online editor at exali. She creates content on topics that are of interest to self-employed people, freelancers and entrepreneurs. Her specialties are risks in e-commerce, legal topics and claims that have happened to exali insured freelancers.
She has been a freelance copywriter herself since 2021 and therefore knows from experience what the target group is concerned about.
