Professional Indemnity Insurance Services:
Professional Indemnity Insurance Services provides policy for you and your business with comprehensive protection against claims for financial loss.
You and your business get protected from the financial claims made by your dissatisfied customers by purchasing a Professional indemnity insurance as it acts as a kind of safety.
Some facts about Professional Indemnity Insurance Services:
- It is your duty to take care of your client as a professional.
- You are liable for the losses incurred by the clients if you fail to exercise your duty and neglect promises made,
- All the legal expenses are covered under Professional Indemnity Insurance to defend your status in case negligence claim is made against you.
- You can get protection against the heavy legal charges with professional indemnity insurance in case you may not be at fault and still the clients blame you for negligence on your part.
- You will get protection from such severe actions by covering claim made against you.
- Professional Indemnity Insurance is required by those who are a medical graduate working as a resident doctor, are a practicing medical professional.
- You need a Professional Indemnity Insurance whether you are working with a Hospital or have one of your own practice.
- You need it more if you are a specialist in your specialized field.
- Professional Indemnity Insurance is your protection against all kind of odds occurring in case of your negligence or against any allegation related to your professional services.
- A professional negligence can be either an error, omission or an un-intentional negligence by a medical practitioner during diagnosis or treatment of the patient resulting in bodily injury, illness, sickness, adversities or death of the patient.
How to opt for sum assured value?
- The limit of Indemnity is the sum assured value which is fixed per accident and per policy period and is called Any One Accident (AOA) limit and Any One Year (AOY) limit respectively.
- The cost may vary based on your AOA limit or AOY limit. However, in general the ratio of limit can be chosen as the below mentioned details:
- Per event limit should be between INR 1 lakh to 50 lakhs for 1:1
- Per event limit should be between INR 1 lakh to 25 lakhs for 1:2
- Per event limit should be between INR 1 lakh to 16.5 lakhs or 1:3
- Per event limit should be between INR 1 lakh to 12.5 lakhs for 1:4
- Usually, the recommended Ratio is 1:1 only.
- Mostly, SI is dependent on factors related Doctor Specialization and city /type of customer’s doctor is offering services to.
- Limit of Liability can range from INR 500,000 to INR 50,000,000.
- The Insured has to select and finalize the sum insured he is willing to opt for.
Importance of Professional Indemnity Insurance Services:
- You may become liable for damages to another property or person caused by your business if you own a business.
- You could also face claims of negligence or breach of duty in providing a professional advice or service.
- The threat of potential claims and litigation is very common in business environment and can potentially bankrupt both, small or large businesses.
- Legal action often comes from an unforseen event that you won't have thought of.
- You can protect your business against legal claims by taking either a Liability and indemnity insurance.
- So, choosing the right cover for liability and indemnity is vital to your business.
- You and your business are protected against the financial risk of being found liable for personal injury, property damage and economic loss through a Public Liability Insurance where as protection against claims for alleged negligence or breach of duty arising from an act, error or omission in the performance of professional services is provided by a Professional Indemnity Insurance.
- Your professional reputation will be protected by purchasing a Professional Indemnity Insurance policy.
- You will be able to pursue legal avenues to clear your name and defend your reputation with the backing of a legal and insurance team by taking Professional Indemnity Insurance.
- Peace of mind, security and most importantly, protection of your valuable reputation can be offered with the right professional indemnity cover when advice is your livelihood.
- The risks related to compensation for professionals and business owners can be overcome by professional indemnity insurance as risk coverage can be provided to professionals against any probable claims arising due to their mistakes or errors.
- Professional indemnity insurance covers the risks caused to professionals if a third party receives any harm or damage to life or property due to negligent professional practices.
Types of Professional Indemnity Insurance:
Although human error is common, at times, a professional can be sued by the client for some error that was beyond his control. So, professional indemnity insurance can be availed under different heads to get protection from such situations.
Malpractice Insurance is is useful for professionals whose any wrongful practice can lead to bodily injury and other issues.
Mostly, coverage is offered to physicians and licensed health care professionals like a dentist, nurse.
Errors and Omissions Insurance (E&O):
Errors and Omissions Insurance (E&O) is mainly meant for business professionals like attorneys and architects as it covers the financial risks associated with negligence, errors and omissions.
Defense costs are also covered in this type of Professional Indemnity Insurance.
Civil Liability Cover:
All the risks not included in the basic insurance cover are covered in Civil indemnity cover.
All the liabilities related to defamation, slander and libel, intellectual properties, contract breaching and any personal harm due to compromising on security will be covered by civil indemnity insurance.
Liability on the part of the employer and the public are some exclusions of the civil liability cover.
Inclusions of Professional Indemnity Insurance Services:
- The business can run into irrecoverable financial losses if a consultancy provider is sued by his/her client.
- Hence, Professional Indemnity Insurance is required by all firms and professionals against the damage to lower the risks involved
- Indemnity can be provided against claims arising out of bodily injury, death or legal suits of any patient caused by or alleged to have been caused by error, omission or negligence in professional service for Doctors and Medical Practitioners Liability for another act.
- The Policy Holder and his Qualified Assistants or employees named in the Proposal are included in the insured.
- Your Legal fees and court awarded damages or settlement compensation to be paid against claims arising out of medical malpractice allegations or legal suits including Errors & Omissions in practice, breach of confidentiality allegations as well as loss of third party documents such as cost of reinstatement of documents are covered.
- The litigation expenses when lawsuits arise will be covered in this policy.
- Settlements and awards will also be paid whenever applicable.
- Any legality involved due to bodily injury or death caused by professionals while offering their services as well as defense costs, its fees and other expenses are included in the coverage of this policy.
- Legal fees incurred and damages paid, If awarded by the court for claims or demands raised by either patients or their kin alleging professional negligence will be covered in Professional Indemnity for Medical Practitioner.
- Legal Liability arising against them because of their staff will also be covered by this insurance policy.
Exclusions of Professional Indemnity Insurance Services:
- All kinds of cases and situations are not covered by Professional indemnity insurance. Some of these exclusions are damage with an intent to tarnish the image, criminal activities, Terrorism and war damage, abuse of substance like alcohol and drugs while offering services, fines and penalties, infringement of trademarks, copyrights and patents and bankruptcy.
- Weight reduction treatments, Plastic surgery, HIV Aids, Noncompliance with statutory provisions, Radioactivity, Cosmetic plastic surgery, hair transplants, punch grafts, flap rotations etc are also excluded in the coverage of Professional indemnity insurance.
- Functions of Professional Indemnity Insurance:
- Professionals can save money in case they get into some trouble with their clients by taking a Professional indemnity insurance.
- Your clients, and the kind of trouble you can get into if any client files a case against you need to be evaluated first that will help to decide the insured amount which can be done in consultation with the insurer.
- The insurance companies and plans offered should be checked and compared to get the best deal.
- The premium to be paid will depend on the sum insured.
- The proposal form along with the required documents need to be submitted,
- Immediately inform the insurance company in case of any eventuality and submit the claim form with other required documents to claim your insurance.
- The claim can be either accepted or rejected after an assessment.
- You can approach the court of law if not satisfied with the case.
Eligibility Criteria for Professional Indemnity Insurance:
- Professional indemnity insurance should be taken by companies dealing with professional consultants, and other professionals dealing with clients.
- The groups that are eligible to purchase professional indemnity insurance are:
- Lawyers, attorneys, counsels and solicitors.
- Professionals working in health sector, accounting, architecture.
- Organizational bodies like hospitals, medical institutions, construction companies, auditing firms and legal firms.
- Brokers, engineers, management consultants, IT professionals, etc.
- Some specific plans are also designed for software and website developers.
Claim Process of Professional Indemnity Insurance:
- You should inform the insurance provider as soon as possible on the occurrence of any eventuality.
- You should share the document with the insurance company immediately in case of receiving any legal notice.
- You need to submit the duly filled in claim form along with other required documents.
- The claim will be accepted if the insurance company finds it a fit case after an assessment else it will be rejected.
- You can approach the court of law if you are not satisfied with the case.
Documents Required for Claim Process:
Duly filled in claim form, any legal notice, if served by the client, registration certificate of professionals, certificate for institutions like hospitals and the details of client to evaluate the degree of financial loss are the documents required for filing a claim in case of any eventuality.
Advantages of Buying Professional Indemnity Insurance:
- Availing professional indemnity insurance should be considered by those professionals who are dealing with clients as they always face the risk of being in some trouble.
- The requirements of different professional services and professionals are covered under professional indemnity insurance.
- Comprehensive coverage is provided against various types of risks.
- Legal costs and other expenses are covered under professional indemnity insurance.
- The sum insured mid-term can be increased or decreased.
- Generally, buying Professional Indemnity Insurance can help save money compared to what you end up paying for the legal hearing and compensation to clients.
Important Aspects of Professional Indemnity Insurance:
All the aspects relating to professional indemnity insurance should be considered before finalizing a plan. Some of these points are:
Retro Active Date:
A Retro Active Date clause is provided by some insurance providers in their policies which means, this is the duration before the policy commences its actual tenure.
Benefits of claiming the sum assured for the errors happened in that period (Retro Active) is provided by Retro Active clause as the policy only covers the financial losses incurred during the tenure.
However, such a claim has to be asked by the policyholder during the period of the policy.
A tail reporting clause is also provided by some insurance providers in their policies which offers the benefits of availing claims for the incidents occurring within the policy duration but were not reported until the policy was exhausted.
The claim would be valid only in case the policy is not renewed for that specific period, but you have to pay higher premiums which would be decided at the commencement of the policy.
Transferring Dates to New Policy:
A clause known as 'prior acts' is included in some policies which leads to the elimination of the tail reporting clause.
The policyholder can transfer the Retro Active date to a new plan from the older one in usually less cost with this clause.
Professional indemnity insurance can also be availed as a group insurance in which the members of a single profession working in a professional association or firm are covered.
A premium at a discounted rate is also offered in this policy as and when the new members are added.
Enquire for Professional Indemnity Insurance Services Providers Anywhere In India
Getatoz have Professional Indemnity Insurance Services providers at major parts of India including Mahe, Faridkot, Sasvad, Yellandu, Sangareddy, Achalpur, Mahendragarh, Mandi, Makhdumpur, Rajnandgaon, Pratapgarh, Kailasahar, Sattur, Morshi, Rayagada, Pathardi, Tarbha, Sathyamangalam, Kadi, Bongaigaon City, Baleshwar Town, Pudukkottai, Tiruvethipuram, Nuzvid, Robertson Pet, Warisaliganj, Medininagar, Lakshmeshwar, Bhiwandi, Kullu, Rayadurg, Nahan, Nimbahera, O' Valley, Pukhrayan, Khair, Ranaghat, Kyathampalle, Vrindavan, Srirampore, Bikaner, Ballari, Gokak, Neyyattinkara, Reengus, Ajmer, Mariani, Baharampur, Padmanabhapuram, Pondicherry and other localities of India as well.