What is professional indemnity insurance
Also known as professional liability insurance, professional indemnity insurance is a form of cover that protects certain businesses, particularly those that ‘sell’ knowledge and skills. The forex industry provides such services, and therefore many forex license holders choose to obtain professional indemnity insurance.
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Professional indemnity insurance features
Professional indemnity insurance covers businesses against claims for loss or damage. If a client has a financial loss from trading with your company as a result of alleged neglect, error or omission and wishes to make a claim, professional indemnity insurance covers your forex company for any legal costs that may arise from a lawsuit filed against you.
Many professional forex brokerage firms are required to have professional indemnity insurance as a regulatory requirement, however this will depend upon the jurisdiction that your forex company is licensed in. Nevertheless many forex brokerage firms choose to have professional indemnity insurance as an additional form of cover and protection from any claims, as they rely on this type of insurance to be able to operate their business.
Professional indemnity insurance protects your company from both a claim made against you, while also covering you for any legal costs that may arise from a filed lawsuit. In addition, it provides coverage for any potential compensation in the event of losing a lawsuit. There are many forms of insurance that can be obtained in order to ensure the utmost protection for your company. In addition to professional indemnity insurance, many brokerage firms also take out business insurance as a form of additional safety and legal cover in the event of a claim.
A huge claim made against your forex company can have detrimental impact on your brokerage firm and could potentially result in bankruptcy. Therefore obtaining professional indemnity insurance is recommended to protect you and your company against any lawsuit instances.
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