All You Need To Know About Professional Indemnity Insurance Cover

What is Professional Indemnity Insurance ?

Professional Indemnity cover is designed to protect those professionals who are involved in  giving advice or providing a service as a part of their business. Professional Indemnity Insurance covers for legal costs and expenses incurred in your defence, as well as any damages or costs that may be awarded if you’re alleged to have provided inadequate advice or service that may have caused your client to lose money.

Reasons for why you may need Professional Indemnity Insurance

• If you provide advice and consultancy, clients can claim compensation on account of any wrong information and advice
• In cases where you provide an expert service, mistakes in designs, plans and calculations can lead to claims from clients
• If your work includes handling people’s information, you need to refrain from blunders like infringing on client’s legal rights or accidentally disclosing data.
• Many clients prefer firms having Professional Indemnity Cover before agreeing upon working together.
• If you are working with a professional body or association where professional indemnity insurance is compulsory

Professional Indemnity insurance secures you against the cost of dealing with the claims of a discontented customer, or any mistake that leads to a loss of client’s money, whether it’s due to wrong advice or assessment. Therefore, it is important to get insured against the risk of committing such errors.

Professional Indemnity Insurance for Doctors

Medical negligence cases have become very frequent these days. The uncertainty of the amount for the claims can generate fear in the medical professional. The amount claimed is often based on the mental trauma or stress caused to the patients or loss of physical faculties allegedly caused due to improper treatment. In such cases, the patient’s expectation is monetarily huge. Due to the rise of such claims by patients, doctors prefer being protected by the legal costs involved.

Exclusions

Professional indemnity insurance for doctors may not cover the following-

– Medical treatment provided for weight loss, plastic surgery, genetic damages, and conditions associated with AIDS
– A criminal act, penalties or fines
– Intentional non-compliance, willful neglect, deliberate act
– Loss of goodwill
– Medical practice when conducted under the influence of alcohol or narcotics

Advantages Of Professional Indemnity For Doctors

• Insurance will be recognized in the hospitals that you work in, in India and overseas. It will also meet any contractual requirements that you may have.
• This cover will help you pay the litigation costs, court fees and further settlements.
• Some insurers will help you support to defend your case. In a few cases, they will take the obligation to fight your case as well.

Who Can Take This Policy ?

The policy is meant for professionals. ‘Professional Indemnity’ policies can be issued to the following group of professionals-

• Doctors and medical practitioners like physicians, surgeons, cardiologists,pathologists
• Medical establishments such as hospitals, nursing homes
• Engineers, architects and interior decorators
• Lawyers, advocates, solicitors and counsels
• Chartered accountants, financial accountants, management consultants

Medical errors are common in general practice and in hospitals. These errors can cause serious harm to patients. Any step in the prescribing process can lead to errors. Unintended omissions in the prescription of drugs, faults in dose selection or common misunderstandings of handwriting are some of the major problems.

Incomplete knowledge can be dangerous in every field but can be fatal in the medical field. Wrong medical history can also lead to wrong decisions. Inadequate communication in hospitals can also lead to drastic errors. The unsafe working environment is of great threat to the medical profession, and the procedures need to be decided beforehand.

Professional Indemnity for doctors can be a gateway of rescue to these unintentional or sometimes fake allegations. Errors and Omissions can, however, be prevented to an extent, but financial security is a must for unprecedented events. As the claim funds can be huge, it is better to protect yourselves through insurance.