Professional Indemnity Insurance

Professional Indemnity Insurance is required for professional consultants who charge a fee for their services. It protects the insured against claims for financial loss, injury, or damage resulting from a breach (or alleged breach) of professional obligation in the course of doing business.

Its goal is to safeguard the firm’s position and assets in the case of a claim, allowing the company to continue operating.

How Does Professional Indemnity Insurance work?

Professional liability insurance is known by several names depending on the profession, such as medical malpractice insurance for doctors and errors & omissions insurance for real estate agents. Professional liability insurance is a type of coverage that isn’t available through homeowners’ endorsements, in-home business policies, or company owners’ policies. Only claims made within the insurance period are covered.

Professional liability insurance policies are typically written on a claims-made basis, meaning that coverage is only valid for claims filed within the policy period.

Typical professional liability insurance will indemnify the insured against loss resulting from any claim or claims made during the policy period as a result of any covered error, omission, or negligent act performed during the policy period in the course of the insured’s professional business.

Although some policies may include a retroactive date, incidents that occurred before the coverage was activated may not be covered.

Types of Professional Indemnity Insurance

• Malpractice Insurance: Physicians and licensed health care providers, such as dentists and nurses, are mostly covered. This is useful for experts whose mistakes can result in bodily injury and other problems.
• Errors and Omissions Insurance (E&O): This is primarily for professionals in the business world, such as attorneys and architects. It protects you from the financial consequences of negligence, errors, and omissions. It also pays the expense of defence.
• Civil Liability Cover: All risks not covered by the standard insurance policy are covered by the civil indemnity.Civil indemnity insurance will cover any claims linked to defamation, contract breach, slander and libel, intellectual property, and any personal harm caused by compromising security. Exclusions from the civil liability coverage include liability on the part of the employer and the general public.