Member News | NiHao Global and the importance of professional indemnity insurance

A question that must be asked before using any translator or interpreter


China is country of over 1.3 billion people. Each of them has different levels of skill or expertise in their fields. The country has changed so fast that the skills, systems and people are lagging behind. This leads to a great risk for Western countries and companies when they enter the market.

There are, however, companies and individuals in the market that are striving to set new standards. Laws and processes are evolving along with training. This, coupled with the number of Chinese now coming back to the home country as the “phoenix rises”, is leading to an enhancement of skills, processes and systems adopted from their Western corporate counterparts.


A key component of what the returning Chinese are delivering relates to risk management. When it comes to the selection of a service provider, three major factors which must be considered include 1) qualification; 2) experience; 3) do they carry proper insurance, such as professional indemnity insurance.


There is no need for further explanation of the first two things, as they are almost an essential. As to the third – professional indemnity insurance – it is required by law in some countries for certain kinds of professional practice, and is also sometimes required under contract by other businesses that are the beneficiaries of the advice or service. In developed countries such as the USA and European nations, professional indemnity insurance has been very popular. However in China, few companies have realized its importance, especially in the language service sector. Without proper insurance, a company service provider, or especially an individual interpreter or translator, might not be able to afford to pay damages in the unfortunate event of a lawsuit. Signing major contracts or entering into business arrangements with a party that is not covered with professional indemnity insurance will guarantee neither the company’s interests nor their clients’. If something goes wrong, you may have to spend extra time and energy fighting a lawsuit, which may prove to be in vain, considering the relatively less well-established or less standard laws in China.


Thanks to its Western origin, Nihao Global realizes the trend and importance of professional indemnity insurance, which makes it among the few, if not the sole company in China’s language service sector that is covered by such insurance for translating and interpreting services and ultimately for the benefits of the clients.