Professional Indemnity ? Protecting A Professional

Professional Indemnity (PI) Insurance is an essential requirement today even though it increases overhead cost. Professionals who are into counseling or advising, designing, engineering, publishing, IT consultancy, management and other specialized services like accountancy and finance must procure it. Now days, even solicitors are availing it.

How Professional Indemnity Insurance Provides Protection :

Professional Indemnity Insurance gives financial coverage for organizations or individuals facing claims for negligence, omission or professional errors towards the concerned dissatisfied party. It also protects against claims for reputation damage by an involved third party, even ones that can become highly expensive and cause considerable financial loss. Besides, it gives cover for violation of confidentiality, infringement of copyrights, maligning, libel, careless actions or statements and nasty deceptions. It also covers the fixing expenses and aids in defending the insurer, even if the case becomes nasty and worse.

Various Factors Involved in Professional Indemnity Insurance

Insurers? Organization Type
Insurers? Organization Size

Limit of Indemnity ? Maximum amount to be given as recompense and if it must include court expenses. The limit of indemnity is mostly dependent on the type of service required by the client. If preferred, insurance companies provide even conveniences like claims staff with expertise in the insurers? field and skilled legal team for defending the claims against insurers in court.

While taking out Professional Indemnity Insurance, it is necessary to add retroactive cover for insurer to be ready to face all claims that may come up within a year. Some insurers offer this cover free of charge and in case of insurers canceling the policy mid-term; they will be given pro-rata refunds.

Since different organizations have varying needs, it might be necessary to buy maximum affordable cover. It is imperative to cover all bases. The add-on policies give coverage for public liability, equipments, office content and other such requirements. But there are companies offering Professional Indemnity in a single package to fit everyone.