What provides financial protection to professionals against claims of negligence?

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The concept here is financial protection for professionals in case a client claims negligence. Professional indemnity insurance is designed for that purpose, covering legal costs, defence fees, and any settlements or compensation if a claim is made. It protects your business financially when a claim arises from alleged mistakes or omissions in your professional work. The other options don’t provide this protection: data protection is about safeguarding client information, a filing system is simply organizing records, and data handling responsibilities are duties to manage information correctly. None of those insure you against negligence claims.