The Custodian Insurance Industry Blog

November 22, 2018

Reasons why NOT to buy PI Insurance

1. You have a cost effective lawyer on speed dial

How convenient! This is something we all wish for but unless you are getting your legal services for free this is not the case. You will never be able to know exactly how much legal services cost in the event of defending a claim. They can amount to thousands of pounds taking into account disbursements, court fees and professional fees. Unless your cash flow is constantly excellent, having to meet these costs can be tough for your business.

2. You have tens of thousands of pounds in the bank in case of an emergency

Maybe you do. But do you really want to use this hard earned money for defending a claim when your insurance can do this for you? Most of us do not have a stack of money sitting in the bank.  So this could mean that  you would have to throw everything you have (including the kitchen sink) to defend a claim and protect your business.  After the event insurance could be an option,  but  not a very cost effective one.

3. You’re a pro so you never make mistakes

No matter how much of a pro you are, mistakes are inevitable.  We all make them. You may just be having a bad day, make the smallest   error, or forget to do something.  Or it could be one of your employees or consultants that has messed up.   Having a back- up plan in place in the event of a mistake occurring seems like a good idea

4. Insurance is overpriced, unnecessary and won’t cater the needs of your business

Yes insurance may be an outgoing and seem burdensome at  times, but  if something was to go wrong it will seem like your best friend! Having a business and having insurance  go hand in hand. You always put your seat belt on before you drive your car…don’t you?So why do business without insurance? At Custodian we want to understand your business and concerns to offer products designed with your industry in mind  which meet the specific challenges, threats and risks you face.

5. You don’t worry about problems until they arise

It is easier to think, “I’ll deal with that when it happens” and to not have appropriate safeguards in place in the event of a problem. This is a risky approach.If something were to go wrong and you have no PI insurance in place you’re out on your own. Where would you even start to resolve the issue? How much will it cost you? Who should you phone? Which lawyers can you trust?  Which lawyers can you afford!?

These questions could easily be answered if you have PI Insurance in place. You would simply make a phone call to your insurance provider explaining to them what has happened. From then on they would be there to deal with the problem so you can get back to focusing on what you are (usually) best at.  Your business.

Get in contact

If you have any questions about anything mentioned above please do not hesitate to get in contact with us. Just contact zahid@custodianinsurance.co.uk or call 0207 648 4343.

 

 

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