What is a Professional Indemnity Insurance Policy and who need to take it?

Posted by insurancebrokersae on March 13th, 2020

Professional indemnity insurance policies provide financial security to the professionals, who are involved in a high-risk job, against personal injury, financial loss, and property damage while working for a client. The word indemnity refers to the security, insurance, or protection provided to someone against a loss or financial burden. Professionals in industries like healthcare, construction, and financial consulting are exposed to some risky situations during the course of their job. This insurance policy covers the financial burden and liability due to a professional error, negligent act, or omission.

Professional indemnity insurance becomes essential as it allows professionals to offer services without worrying about any financial burden for any mistakes. It covers compensation payments and legal fees if a client sues the service providers for a mistake while working for the client.

Who is likely to need professional indemnity insurance?

• Professionals who offer financial advisory and consulting services to their clients
• Architectures or engineers who provide designs to their clients
• IT professionals and contractors that offer It & software implementation services
• Solicitors and lawyers who offer legal advice and consultation
• Healthcare professionals involved in the high-risk medical procedures
• Freelancer or self-employed professional

Benefits and features of professional indemnity insurance plans:

With many insurance firms fighting for the market share in the growing sector of the professional indemnity insurance market, one can avail of many benefits offered by these companies. Some of the most common benefits and features are:

• Various insurance companies offer group professional indemnity policies to the members of a single profession. Depending on the number of professionals, insurance companies also offer discounts on the premiums to their clients.
• It covers all the legal liabilities and financial burdens resulting from any professional error, negligent act, or omission while working for the client
• It also covers the legal fees and consultation charges applicable in the court
• Professional Indemnity insurance offers financial protection to the professionals in almost all kinds of industries including financial accountants, management consultants, solicitors, lawyers, architectures, interior decorators, engineers, IT professionals, charted accountants, doctors, medical professionals, and many others.

If you are looking to take professional indemnity coverage plans, you need to find the right insurance company that offers professional indemnity policies to professionals from a variety of industries. While searching for the best insurance firm for your needs you should be well prepared with your requirements and why you are looking to get a professional indemnity insurance plan. To find the best insurance plans and benefits, compare the policies offered by different insurance companies and choose the right one that best suits your needs.