PROFESSIONAL INDEMNITY INSURANCE

Professional indemnity insurance is an insurance cover for those professionals who work in those industries where people rely on their advice as they are regarded as experts in their field. However, if anyone suffers a loss because of their advice, be it financial or otherwise, they can be held liable for that loss and other may seek legal action against these professionals. For example, if you happen to be a professional accountant, your job is to take care of filing the tax returns for your clients on time, however, if you forget to do it on time or make any other kind of mistake, it can result in huge penalties for your client. So for the negligence in your work, your client can file a lawsuit against you in the court of law and you may be asked to pay him some compensation for his loss on account of breach of professional duty.

This is where the professional indemnity insurance can save you by covering such compensation claims which also includes the legal fees to defend your case up to the limit specified in your policy. However, it is always advisable to read your policy document carefully to know what the limits for your coverage are.

Posted in: Professional Indemnity Insurance