Indemnity insurance or professional indemnity insurance is a type of insurance policy which is designed to shield professionals and business owners if they are found to be guilty of some event such as misjudgement or some other professional risks. Indemnity insurance is also called as professional liability insurance. It provides cover for the claim of providing inadequate services, advice, design, etc. against the insured. Liability insurance also covers the compensation that is payable to the client for correcting the mistake.
Need of Professional Indemnity Insurance
While working as a professional, it is always a possibility that you or your colleague could make a mistake, regardless of the experience. So, it is a good option to have a liability insurance if you regularly work with clients or businesses and Handle their work, data, intellectual property or even provide them with professional services or advice. The indemnity insurance covers you and your firm from facing financial losses if a claim is made against you or your company. Thus, having a professional liability insurance which adequately covers your organisation is a safe option while doing a day to day business.
Professional Liability Policy Covers
An indemnity policy covers the following Range of scenarios –
- • Professional negligence
- • Loss of data or other documents
- • Loss of goods and/or money
- • Unintentional breach of confidentiality or copyright
- • Claim investigations expenses
- • Defamation
Who Can be Insured Under the Professional Indemnity Insurance?
This policy can be taken by –
- • Doctors and medical practitioners like surgeons, pathologists, etc.
- • Engineers, contractors, architects, etc.
- • Hospitals, clinics and nursing homes
- • Lawyers, chartered accountants, counsellors, advocates
- • financial advisors, management advisors, etc..
Exclusions from the Professional Liability Insurance Cover
There are certain exceptions which are not covered by the indemnity insurance. Let us take a look at those –
- • Criminal acts, frauds and other law violations.
- • Being under the influence of drugs or alcohol while rendering the service.
- • Intentional damage
- • Contractual liability
- • Act of war or terrorism
- • Insolvency of the person with indemnity insurance.
Top Insurance Companies that Provide Liability Insurance
- • New India Insurance
- • Reliance General Insurance
- • United India Insurance Company
- • ICICI Lombard Insurance Company
- • Tata AIG Insurance.