Professional Indemnity Insurance is a type of business insurance, typically for organizations that provide consultation or any professional services to its
clients. Professional indemnity insurance covers claims made by the businesses in case their clients have sued them for making them endure any significant
financial loss due to their advices and services.
Professional indemnity insurance works to protect businesses and individuals who provide consultation and services with the compensation for full and hefty costs arising from the loss that they have caused to their client. The coverage provided by the insurance company focuses on the alleged failure of the service delivery by the company, which has led to the financial loss due to errors and omissions in the service or consultation.
The insurance company handles the confidential data of its clients and their intellectual property to analyze before it provides consultation and required services. Keeping in mind the confidentiality of such information, it becomes very important for a business to take up professional indemnity insurance or professional liability insurance.
Some companies seek business with consultation and service providers demand that the individuals or businesses need to be covered by professional indemnity insurance. This is in order to lower the risk of not getting compensated for the losses caused by the business during the tenure of their service. Some individuals or organizations that need to have such insurance are accountants, financial advisors, healthcare professionals, solicitors, architects, chartered surveyors, etc. Most organizations decide to take up professional indemnity insurance keeping in mind their own protection against coughing up a large sum of money, in case they have caused their clients a huge loss due to their own mistakes and have to compensate for that amount. It does not matter if you share a good business relationship or bond with your clients. A mistake that may lead to a financial loss will disrupt the peace between you. Therefore, it is very important to take up professional indemnity insurance for protection.
With a plethora of features and benefits, Public Liability Insurance is becoming popular in the insurance sector. Here’s a rundown to the key benefits and salient features of Liability Insurance:
Various insurance providers offer group policies for professional indemnity cover. Members of a single profession will get the coverage. These policies also offer a discount of premium depending on the number of group members added under the group plan.
Professional Liability Insurance Policy covers all the legal liabilities arising out of negligence, omissions, or errors of any professional whilst rendering service that causes damage to the property of third-party or injury to the third-party itself.
Expenses Incurred for Defence:
Public Liability Insurance also covers all the expenses incurred for defence. This means, all the charges and fees applicable to your defence in the court, is paid off out of your sum insured. However, this feature is limited within the boundaries of India only.
The General Liability Insurance Policy is meant for professionals like:
Management consultants, Chartered Accountants, Financial Accountants, Solicitors, Counsels, Lawyers, Advocates, Interior Decorators, Engineers, Architects, Doctors, other medical practitioners, Medical establishments.
negligence, or the faulty analyses will only be covered if those mistakes were made during the tenure of the insurance policy. Claims made before or after the period of the policy will not be covered.