Professional Indemnity
What is Professional Indemnity?
Professional indemnity, also known as professional liability insurance, protects professionals and businesses against financial losses and legal costs arising from claims of negligence, errors, or omissions in their professional services. It essentially covers the cost of defending against a claim and any damages awarded, ensuring the professional or business can continue operating.
What it covers:
Key Features covers:
- Financial losses:
- Legal costs:
- Damages:
- Reputation:
Who needs it?
- Professionals who provide advice or services for a fee:This includes lawyers, doctors, architects, engineers, accountants, consultants, and many others.
- Businesses that rely on professional services:Companies that hire professionals should also consider professional indemnity for their own protection.
Why is it important?
Importance:
- Legal liability:
- Financial protection:
- Peace of mind:
- Industry requirements:
What is an example of a professional indemnity claim?
- Prepares you for unseen risks. Setting up a fund with an accurate amount to pay for future compensations is difficult. …
- Keeps your practice running.
- Keeps your assets safe.
- Pays your legal costs.
- Boosts your confidence
What is generally covered by professional indemnity insurance?
Provides cover for: Any actual or alleged breach of duty. Negligent act, error, emission, or misstatement. Misleading statement.
What is not covered by professional indemnity insurance?
It is also worth noting that professional indemnity insurance does not typically cover intentional wrongdoing, criminal acts, or claims arising from a breach of contract (unless the breach is due to negligence).
