Thursday, February 10, 2011

Who Needs Professional Indemnity Insurance and What it Covers

Professional Indemnity insurance is critical for businesses to smoothly carry out their professional duties. As businesses may face the risk of getting sued by their clients for giving wrong advice, the Professional Indemnity insurance provides coverage to the policyholder against claims made by clients for professional neglect, falsehood, breach of confidentiality and more. It is in best interest of the professional businesses, which are in sectors where people rely on their advice, to have professional indemnity insurance as compensation claims can significantly impact the businesses.

It Covers:
Professional Indemnity insurance provides protection to businesses against risk of compensation claims made by clients including the legal defense costs.

Negligent Act, Error/Omission
Professional Indemnity insurance provides coverage to the policyholders in case of claims filed against them by the client for loss or damage due to act of negligence, error, or omission while executing their professional duties.

Breach of Contract
The Professional Indemnity insurance indemnifies the policyholder against any compensation claims made by the clients during the policy period due to breach of contract for not providing results that meet the expectations.

Civil Liability
The Professional Indemnity (PI) insurance can provide indemnity to the insured in case of any civil liability that covers breach of contract, libel, or slander. The PI insurance protects the policyholder in case of compensation claims filed by client for slander or libel by policyholders that were unintentional or occurred while performing professional duties.

Common Professions Purchasing PI:
Professional businesses which are providing advice to people based on their expertise ideally purchase Professional Indemnity insurance.

Accounting and Financial Services
Professional Indemnity insurance is a necessity for professionals in accounting and financial services as it provides a broad coverage for variety of claims that may arise due to stringent tax laws, accounting and corporate practices. Any businessman who acts or takes decision as per the advice given by accounting or financial service firm and suffers a loss or gets fine is likely to file compensation case. PI insurance covers the accounting and financial services against such claims and legal costs.

Architecture
Architects or architectural firms provide a professional advice to people and companies in return for suitable remuneration as fees. But the professional advice given by Architectural firms might prove wrong and the client may suffer financial loss and seek compensation. PI insurance covers the architectural firm against any compensation claims and legal costs due to property or material damage.

Consulting
Consulting businesses of any type needs Professional Indemnity insurance. As consulting businesses mostly give advice to clients, the PI insurance will cover the businesses for any advice given to clients. In case the clients suffer financial loss due to the advice given to them, the PI insurance can cover the compensation claim amount and legal costs.

Information Technology
Professional Indemnity insurance for Information Technology firms provide protection against compensation claims due to acts of professional negligence, breach of duty, errors or omissions resulting into client data theft, non-performance of professional duties and more. IT firms can include computer consultancy firms, internet services, Networking etc. IT consultants can have protection against breach of contract as their client businesses can break contracts in times of economic crisis to recover project cost.

Legal
Legal professionals also need PI insurance as they give advice based on their expertise in law. PI insurance can provide cover to legal professionals for various legal activities performed by them. PI insurance for legal professionals cover compensation claims due to financial loss or negligence in professional duties meted out to clients.

Medical
Professional Indemnity insurance is important for doctors, surgeons, medical practitioners etc as this profession is prone to litigations. The PI insurance for medical professionals covers compensation claims filed due to bodily injury or death of patient as a result of professional negligence, showing lack of duty of care and more.

Neglecting the importance of having Professional Indemnity insurance can significantly cost any professional businesses in long run. Professional Indemnity insurance acts as a buffer against compensation litigations, legal defense costs etc that can ruin the businesses.

Keystone Insurance Group is Ireland’s premier supplier of public liability insurance and business insurance solutions to the Irish industry. We offer a broad range of builders insurance, public liability insurance Ireland, construction insurance and liability insurance products to contractors and general business customers. Our experienced and professional team quickly arranges quotes for all classes of business insurance.

6 comments:

  1. Very interesting and informative post. Thanks a lot for sharing this. I learned a lot.

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  3. This was a really informative article, thanks! It is so important for all professional businesses to purchase PI insurance when there are so many different risks it can cover them for.

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