Why is professional indemnity insurance essential for your business?

Insurance can take many forms and guises, and the many different types can often leave people stumped and confused as to which is best for them. Here we will look into one particular type, Professional Indemnity Insurance, and what it can do for your business.

Professional Indemnity Insurance will prove invaluable the moment that your business is accused of making a professional mistake. If such a situation should arise, for whatever reason, having plans in place will be vital. Keeping insurance policies up to date has never been more important for a business than it is in the current age of compensation culture. People are more keen than ever to cast their eyes about, look for anything that could be construed as a mistake, and take action if they feel they can.

Having the insurance in place will mean that your business and the individual employees contained within will be protected from allegations from third parties, and will cover any legal fees that may be incurred during the process, as well as the cost of any compensation that may arise. For businesses working within certain areas, such as financial services, having a Professional Indemnity Insurance policy in place is a legal requirement. For others it is highly recommended. Property professionals and accountants are particularly advised to take out policies, due to the risks their business occurs on a day to day basis. A mistake made by an accountant could cost his client on a severe financial level, a mistake in making a property evaluation could potentially cost a homeowner significantly for example. If these forms of mistake occur, the protection would come via the Professional Indemnity Insurance. It is also worth noting that whether you charge for professional advice is unimportant. If your business is issuing advice free, or as part of some benefits package, there is still scope for exposure to liabilities and therefore possible claims of negligence.

The way in which the Professional Indemnity Insurance operates in a way different from certain types of insurance, basing itself on the ‘claims made’ model. Essentially what this means for your business is that it is the policy which you hold at the exact time when the claim is made that moves into operation, rather than the policy held when the alleged professional mistake occurred. This means that a third party can make a complaint many years after the work or advice took place, potentially putting your business in a tricky position. This highlights the need to keep a Professional Indemnity Insurance policy in place at all times, and keep it up to date, relevant and effective, regardless of whether work is currently taking place.

Professional Indemnity Insurance packages can be tailored to fit the needs of any business, so it is always worth discussing options and finding out what suits your particular needs best. There is no ‘one size fits all’ policy, every business will require different cover. What is essential to remember however, that the cost of choosing not to insure yourself could put the financial security of your entire business at severe risk. Learn more about Professional Indemnity Insurance for your business at Endsleigh.co.uk

Contactless payment introduced on London buses

Bus passengers in London can now use a contactless debit, credit or charge card to pay for their journey, Transport for London (TfL) announced today.

To use contactless payment, passengers can touch their payment card on the yellow Oyster card reader and pay the single Oyster fare on any of London’s 8,500 buses.

The Mayor of London, Boris Johnson, welcomed the new technology and said it means that people can avoid having to search for change and also benefit from the Oyster fare discount.

According to TfL, London’s transport authority, more than 85,000 bus journeys in the capital each day are still paid for using cash. The single fare costs GBP2.30 when paying by cash, which is much higher than the GBP1.35 Oyster fare. Moreover, at least 500 people every day try to pay their fare with a high denomination note for which the bus driver does not have change.

Initially this new payment method will only be available on London’s buses and daily price caps will not be applied, but by the end of next year contactless payment will be extended to cover travel on the London Underground, Docklands Light Rail, London Overground and trams. Daily and weekly price capping will be included at this stage, TfL said.

The authority is also in talks with the train operating companies that serve London about the possibility of accepting contactless payment cards on National Rail services where Oyster is currently accepted.

Contactless enabled cards are currently issued by a number of UK banks. The technology allows users to safely make a fast payment for goods or services costing GBP20 or less without entering a PIN.

French automotive group Renault its sells stake in Volvo for €1.48bn

French carmaker Renault SA (EPA:RNO) on Thursday said it had pocketed EUR1.476bn (USD1.93bn) from the sale of its 6.5% of the share capital and 17.2% of the votes of Swedish trucks and buses manufacturer Volvo AB (STO:VOLV-A; STO:VOLV-B).

The French group sold 138.6m Volvo AB series A shares, representing its entire holding in the series A shares, it said.

The disposal was announced on Wednesday, when Renault said it would complete its exit from Volvo AB, after the sale in October 2010 of its entire series B stake.

The funds raised through this recent sale would be used to cut its net automotive debt, as well as for investments in France in 2013, accounting for 40% of Renault’s total investments next year and strategic growth investments in Russia and China.

These moves are aimed at making Renault’s plants in Europe more competitive and supporting its international expansion, the vendor said.