Professional Indemnity Insurance
Professional Indemnity Insurance is a broad class of insurance policy that is meant to insure liability professionals face at work. This includes coverage for legal defense and amounts awarded in court to the plaintiff if the professional should be found liable for damages.
In today’s litigious world, updated knowledge, strong documentation, and other risk management practices are not enough. Clients are getting more trigger happy with lawsuits and lawyers are getting more expensive. Professionals should purchase this valuable coverage as part of their risk management strategy to reduce the crippling effects of an expensive lawsuit on their business.
In general, there are 2 main classes of professional: medical professions and advice or counselling professionals. Medical professionals include people like doctors and dentists. Advice or counselling professionals include occupations like engineers, insurance brokers, lawyers, realtors, accountants, consultants, recruitment agencies, and many others.
As a professional, you are required to perform at a level that reflects your specialized training measured against your peers and your clients depend on you for accurate advice and services. If you fail to properly provide these services due to negligence, your clients could sustain heavy financial losses or bodily injuries. To recover this money, they would need to sue.
Aside from negligence, most lawsuits we see allege defamation, copyright infringement (especially in the case of IT or marketing professionals) and breach of privacy (especially prevalent amongst recruitment or medical professionals).
Medical professionals protect themselves by purchasing a special type of Professional Indemnity Insurance called Medical Malpractice Insurance. Other professionals have specialized policies meant to reflect the unique nature of their occupation and the hazards that come with it.
If you are on the receiving end of a lawsuit from a client and you carry professional indemnity insurance, your insurance company will spring into action to offer a variety of protections.
Payment of Damages
If you should lose in court, the insurance company will pay for compensatory damages awarded against you up to your policy limit. Sometimes, fines and other regulatory or punitive damages will be covered as well depending on the insurer.
Your insurance company has the right and duty to step in and defend you in court. Because the insurance company is responsible for paying damages if you lose, they have a vested interest in hiring the best lawyers possible, bring in expert witnesses, and take other actions as appropriate to make sure you win or at least face as little liability as possible in court.
One of the main advantages of carrying this insurance is that they will do this even if the lawsuit against you is frivolous or meritless.
Today, professionals do business with clients all over the world – especially if you’re an internet business or a consultant. To reflect this growing need, many insurers will extend coverage to insure your professional liability on a global basis.
Similarly, most policies will also cover liability arising out of services rendered in the past – usually limited to a few years before the policy’s inception date. If you do choose this coverage, the underwriter might require more information and take a deep dive into your business history before offering it.
As you can see above, the coverage provided is pretty comprehensive. If you require any special coverage for an exposure that is unique to your profession, you can usually get it. But there is an important exclusion on all policies: there is no coverage for intentional acts.
This goes without saying but if you are sued for purposely harming a client, the insurance company will deny your claim and will not offer any of the protections outlined above.
There have lots of families who have life insurance. Million contracts are currently running in particular regions. But the former "standard insurance" is poorly available nowadays: it's not worth it anymore. When should you keep your agreement, when should you get rid of it?
There are different types of insurances out there that can help you in difficult times. You can save a lot of money if you have availed a relevant insurance timely. You have to make sure that you have the perfect insurance plans with you. You cannot take a chance with your income and capital right?
Nowadays, mostly all the business simply has commercial general liability insurance. Thus, it is important for you to understand what it covers and what it does not cover.
Needless to mention, the growth of an insurance company is very much based on marketing tactics. People purchase your insurance policies when you convince them about the benefits that your company offers to them. This is where marketing comes into the picture.
Choosing a healthcare plan may seem overwhelming. There are many factors to take into consideration before committing to any policy. Understand these six considerations before making a purchasing decision.
Most small business owners are often finding themselves at the short end of the stick when it comes to choosing suitable auto insurance plans. Small business owners have always regarded commercial auto insurance plans as expensive and best suited for large corporations.
Finding relevant and suitable health insurance for your aging parents can be a tricky affair. After all, insurance companies are reluctant to offer coverage to older individuals. This is mainly because people over the age of 50 are more prone to illnesses and visit the doctor more often.
A business should never underestimate the importance of having commercial general liability insurance. This insurance protects your business in case claims are filed against it for property damage or injuries. You should check with the insurance provider
Building up a strong record as a consumer can cut your protection costs. Safety net providers are progressively utilizing credit data to value property holders protection strategies. In many states, your back up plan must educate you with respect to any antagonistic activity,