Third party indemnity insurance is vital for businesses

There are a number of different third party indemnity insurance policies that you can take out to protect your business against claims made by the public. Having the right level of cover in place is crucial to the survival of your business, should a claim ever arise.

Generally speaking, indemnity insurance is not a legal requirement for businesses in the UK and Ireland. However, there are a few professions, such as accountants, who are legally obliged to have professional indemnity insurance in place.

Most professions, however, will benefit from having this type of indemnity insurance taken out. When you're in the business of selling your skills, you face a number of risks on a daily basis.

If a client feels that you were negligent in providing your skills or errors and omissions were made when you were dealing with them, there's a very high probability that they will bring a case against you. If you don't want a large court settlement to finish your business, it's strongly advised that you take out some level of professional indemnity insurance.

Public indemnity insurance protects you against claims made by a third party for death or bodily injury that arises while they're on your business premises or dealing with your business. It also covers you against claims made for damages to the property of a third party that result from interaction with your business.

Depending on what your business produces, you might also need product indemnity insurance. This will protect you and your business from third party claims of death or bodily injury from using your product. Without some form of third party indemnity insurance, you're walking on a tightrope when you go to work.

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