These limits of Indemnity in order to explain them easily… -hmm- Let’s imagine them as the maximum amount of money that the INSURERS could claim for the professional’s liability to pay the claimant damaged. Got it? Probably not, which is totally normal, and that is why you ended up in a random Irish Professional Indemnity Insurance blog from the internet looking for information for your confused mind.
We actually all hate to deal with insurance. Welcome, take a drink, relax, and feel like home.
Of course you should have clear the fact about the economical coverage limit on your US Professional Indemnity Insurance which will always depend on the contract you first agreed to sign -depending always of course- with your personal volume of needs (a professional who earns an amazing salary of €6.000 a month will not need the same coverage as the lucky ba***rd who makes €100.000 of a profit per month).
Depending on your earnings you will always need to get yourself a different police and hire a better insurance wich normally also tends to become more expensive. The more you have, the more you need to cover, the more expensive it is gonna cost you, the more the Insuring companies will take from you -because they know they can take it from you. Devastating, but we have no place to go, just join the dark force. Try at least to get the cheapest one out there. Even if it is just a 50 euro difference, but things nowdays are not in the best of mood as for having to throw a fifty euro bill to the trash. Even if you earn those €100.000. Actually, you will be surprised if you knew how many people earning 1.000 euros or euros a month would spend and not save 50€ much more easily as someone who actually makes 100.000 a month. That’s why they do it.
But let’s forget this for a while now and go back to the topic we were initially talking about. The limits of indemnity on a Professional Insurance, also called PI Insurance. As we said, our limit of indemnity is basically that can be claimed via insurers for us to pay our “accused” damaged (whoever decided to sue us personally or our business because of whatever reason they believe they have or actually they do have).
We must also warn you that before signing any contract you should always check very carefully the small letter on your policy and per example, have a double checked the section where it speaks about “Defence costs are usually paid in addition to the limit of the amount of money one pays as compensation.” because as we just said, in many cases the defence costs are not even included in the basic insurance, which might happen because you decided to go low-cost and always talk with us first