Professional indemnity insurance cover

Professional indemnity insurance protects the policyholder from claims brought against the professional w.r.t perceived or actual negligence in the delivery of duties.

Applicability:

Doctors, medical establishments, contractors, engineers, architects, interior decorators, chartered accountants, financial accountants, management consultants, lawyers, advocates, solicitors and counsel are the professionals who can avail this insurance cover. If your business involves selling knowledge or skills or you give advice having Professional Indemnity insurance will be a wise move for you.

Liabilities covered:

Professional Indemnity insurance takes care of the compensations you might have to pay to a client who has sued you for professional negligence. Another advantage of holding this insurance is that it covers all the legal cost that you might have incurred in case of such a suit. The cover granted under the policy provides indemnity to the insured against the legal liability and transfers it on the insuring agency.

It is important to understand that Professional Indemnity insurance does not provide the cover for an unlimited period of time or for an unlimited amount. Just like any other policy, the policy will operate only for a definite period which is clearly stipulated in the terms and conditions of the agreement. Also, it provides cover only under a set limit of amount which is again decided at the time of the agreement.

Risks covered:

When a professional offers to provide his services, such as advice, design, supervision or consultation in lieu of a fees or gratuitously the law binds him with a duty of care to the client. It is safely assumed that he will exercise reasonable care and skill in discharge of his duties and can be held liable if he fails to do so.

For interior decorators, engineers and architects, the policy provides cover against risks of material damage, construction damage and death or bodily injury, which may be attributed to a negligent act, error or omission.

For accountants, consultants and lawyers, the policy provides cover against legal liability incurred by the insured by way of losses to clients arising out of acts of errors, negligence or omission on his part or on part of his paid employees named in the policy.

Inapplicability:

The Professional Indemnity Insurance, however, is not applicable in the following cases:

• Any criminal act or violation of any Act of Statute
• Services rendered under the influence of intoxicants or narcotics
• Performance by Dentists under general anesthesia or any procedures carried out under general anesthesia unless performed in a hospital
• Willful neglect or deliberate act
• Third Party Public Liability
• Pure financial loss due to loss of goodwill or loss of market

Professional Indemnity cover will compliment your Public Liability insurance to give you total peace of mind knowing you are covered for all possible claims.