Many people have heard about professional indemnity insurance but do not really have any idea about it at all. So what is professional indemnity insurance all about? Basically, professional indemnity insurance is a form of insurance that protects professionals from claims that are made by clients. If you are practicing your profession and are providing professional services, in the event that you were to make any mistakes on your part that may cause life or property damage, financial loss, infringement of intellectual property, or any type of loss, if you do not have professional indemnity insurance, any claims made unto you by your client will be shouldered by you. However, if you are properly equipped with professional indemnity insurance, any claims made against you will be handled by your insurer.
The coverage provided by professional indemnity insurance handles mostly negligence on the professional’s part. It is your negligent action that has brought damage to your client. While the basic form of professional indemnity insurance covers your basic negligence, it only provides a very narrow coverage. However, if you want to have a wider coverage, purchasing a more premium package will also provide you with coverage on breach of duty as well as civil liability. This is enough coverage to nearly cover most of what you need as a professional. A more expansive coverage on the other hand also provides coverage on “Acts of God”. There are some countries that mandate professionals to have professional indemnity insurance. The insurance not only provides reassurance to clients, but it gives the professional adequate protection from potential mishap on his part.
Since practicing your profession exposes you to possible claims, having the protection of professional indemnity insurance will help bring you that peace of mind. Professional indemnity insurance is of course not the complete package in protecting your best interest. If you want to have better protection, consider buying additional insurance forms such as liability insurance to give your professional interest better protection. The thing about insurance is that they are not exactly a waste of money or added expense on your part. If you try to look at how they minimize the risk you are exposed to, they certainly will make your profession less worrying as you no longer need to worry about the hassles brought about legal proceedings when you are properly insured.