Often we view insurance with the confined lenses of motor insurance, fire and money insurance et cetera. Nevertheless, we forget that our professions warrant indemnity. The question rather should be, what is professional indemnity?
Imagine incurring legal liabilities inflicted to you and/or your firm due to acts of negligence, error or omission while offering professional services to a high end client. For example, an engineer or a doctor. Professional indemnity covers you alongside your firm against such liabilities.
Professional indemnity is a cover designed to provide protection for professionals against losses if they become legally liable to third parties (their clients) as a result of any negligent error, omission, or breach of contract committed during the performance of a professional business service.
A professional business service is an occupation that requires special training and belongs to a professional body.
Our cover indemnifies Accountants, Architects, Engineers, Insurance Brokers, Lawyers, Surveyors, Doctors et cetera.
Case Scenario: Doctor’s Policy
If an individual practicing medicine is insured under the professional indemnity insurance cover, they will be covered against any professional risks like, wrong medicine dosage, negligent misdiagnosis, wrong course of treatment, surgical errors, etc. If the doctor is legally bound to compensate the patient financially, Corporate Insurance will settle accounts with the patient on behalf of the doctor. PI cover may also pay off the legal costs and expenses incurred by the insured.
Benefits of professional indemnity
Financial Protection from lawsuit
The cost of resolving a claim can ruin and, in some cases, shut down a business. However, with indemnity insurance, all defense costs including lawyer fees, court cost and cost of filing legal papers, is borne by the insurer. Our cover will help your business meet legal repercussions and secure you against financial risks arising from lawsuits.
PI policy gives your business brand a display of responsibility and accountability. Qualities of which build a trustworthy relationship with your client. Clients and investors feel confident working with you since in case of any discrepancies, the services rendered are covered by the PI cover.
PI cover prevents interruptions in the running of the business operations. Legal proceedings sometimes drag out into years of court battles leaving the business vulnerable and therefore affecting the business’ productivity. PI cover allows businesses and professionals to continue with their business duties attending to other clients as the suit is being handled.
Professional Reputation Protection
Much like credibility, PI insurance helps protect the long toiled for careers when faced with a claim in terms of their reputation.
This comes into play when considering careers such as; advocates, accountants, architects, chartered surveyors, financial advisers and some healthcare practitioners. Claims can ruin a reputation instantly if not dealt with quickly and professionally.
Peace of Mind
An additional benefit is the confidence the policy provides while performing professional services bringing about efficiency in the business’ operations.
Lawsuits holding you responsible for financial or reputational loss due to services rendered would cause immense mental burden. But with a professional indemnity cover you can focus on the running of your business as it eases some of the strain in the course of the suit.
Obtain peace of mind. Go about your day with our tailor-made professional indemnity cover