Professional Indemnity
What is Professional Indemnity?
Professional Indemnity Insurance is an insurance policy providing risk coverage to professionals against any probable claims arising due to their mistakes or errors. If a third party receives any harm or damage to life or property due to negligent professional practices, professional indemnity insurance covers the risks caused to professionals.
Types of Professional Indemnity?
Human error is a common problem; however, at times, a professional can be sued by the client for some error that was beyond his control. To get protection from such situations, professional indemnity insurance can be availed under different heads. Some of the types of professional indemnity insurance are:
Malpractice Insurance
This mostly offers coverage to physicians and licensed health care professionals like a dentist, nurse. This is useful for professionals whose any wrongful practice can lead to bodily injury and other issues.
Errors & Omission Insurance
This is mainly meant for business professionals like attorneys and architects. It covers the financial risks associated with negligence, errors and omissions. It also covers defense costs.
Civil Liability Cover
Civil indemnity covers all the risks not included in the basic insurance cover.
What is covered by Professional Indemnity?
If a consultancy provider is sued by his/her client, the business can run into irrecoverable financial losses. Hence, all firms and professionals need an insurance against the damage to lower the risks involved. Let us look at the coverage offered under professional indemnity insurance:
- Any legality involved due to bodily injury or death caused by professionals while offering their services
- Defense costs, its fees and other expenses