Professional indemnity insurance is a type of cover that helps to protect professional parties from claims made against them. It covers a range of different scenarios that may be deemed at their worst. Claims may relate to loss or damage to property, loss or damage to reputation, loss or damage to business, and even negligence. There are many other situations where professional indemnity insurance can be very useful. If a client feels that he has been let down by a professional of any sort, this insurance can often help to pay for the cost of the claim. It may also help to protect the party in question in any action taken against him for negligence.
There are many other types of business insurance on the market today, and almost all of them offer some form of coverage on claims of negligence, loss, or damage to property. However, most professional indemnity policies do not. If you need to get free quotes on these types of policies, then there are a few things you should know about these options.
One of the main factors to consider when choosing professional indemnity insurance is whether or not it is worth the coverage cost. While a policy might be very inexpensive initially, you may end up spending much more money in legal fees or out-of-pocket expenses if you have to make a claim against your business. Therefore, it is imperative that you carefully assess how much your business stands to lose before you decide whether the policy is worth its purchase.
Another factor to consider is whether you are likely to be covered for negligence claims. For example, if you are a property developer and one of your workers suffers an injury on the job, then you will probably be covered for this claim. If you are an engineer or construction worker, however, then the professional indemnity insurance policy will not likely cover you for this type of claim. Another example could be that of an accountant. If your client files a claim against you for negligence, the liability of your business could be covered by the policy. However, if you were a solicitor making professional advice on contracts, the policy would not cover you for this type of loss.
You may also want to consider whether the professional indemnity insurance policy covers retroactive damages. Often, you are protected from liabilities after the policy has been purchased. However, some polices only offer protection from claims for a specified period of time. If you file a claim within a certain time, your business may be covered for all claims up until the retroactive date.
Most professional indemnity insurance polices specify that they will not cover claims brought about by negligence or breaches of contract, except to the extent that they result in gross misjudgments or gross errors of omission. There are a number of professions that fall into this category. For example, many accountants fall into this category because they fail to spot potential financial problems on their clients’ accounts and bring about legal claims that exceed the amount of liability set out in the accountancy contract.
Professionals such as teachers and nurses fall into the second category of professions. Because they perform work that affects the mental and physical health of others, teachers and nurses are particularly susceptible to professional liability insurance claims. In addition, because of the sensitive nature of their work, teachers and nurses may have to resort to confidentiality agreements in order to protect their reputations rather than suffer a professional liability claim. Therefore, they are often the best candidates for professional liability insurances. However, there are situations where this type of insurance is not necessary.
Professional indemnity insurance includes a list of sub-categories, including breach of contract, negligence, errors and omissions, and fraudulent claims. It is intended to cover those professionals whose professional reputation is damaged through gross negligence, malicious intent, or errors or omissions that cause personal injury to a customer, client, or employee of a business or other organization. While professional indemnity insurance covers professionals who make false claims or errors, it does not extend to those who unintentionally injure a customer or create financial harm due to their professional actions. Professional indemnity insurance also covers conflicts of interest that arise in the professional realm.