All professionals are susceptible to making mistakes due to negligence at work. However, a doctor, lawyer, or financial advisor committing an error, though seemingly negligible, may lead to losses or land their clients in unfortunate circumstances.
In case of a lawsuit, these professionals may have to pay from their pockets or even suffer a loss of reputation. This makes it necessary for certain organizations to have indemnity insurance.
This cover is available to all kinds of professionals but is especially beneficial to those in the medical, legal, and accounting or consulting fields.
Let’s look at five of the organizations which must have professional indemnity insurance coverage.
Hospitals and Nursing Homes
A hospital’s staff includes medical practitioners, doctors, gynecologists, nurses, interns, and compounders. A doctor treats patients and conducts critical operations in complex scenarios.
In some cases, the patient may not survive despite the doctor’s best efforts. This puts the doctor or the medical establishment at risk of a lawsuit. The deceased’s family may allege that the patient has died due to negligence or misdiagnosis.
Such a lawsuit will not only affect the concerned doctor but also the hospital’s reputation.
In such scenarios, professional indemnity insurance can save medical practitioners and the hospital from legal or compensation costs. Hence, hospitals must avail of this policy to save their reputation and avoid unplanned expenses. Some of these insurances also pay for reputation damage control costs.
Law firms are run through the services of reputed lawyers and legal consultants. They fight for those caught in unwelcome situations arising out of professional or personal discord.
These professionals share a bond of trust with their clients who share confidential information to form a strong case. However, if the lawyer loses the case the client may file a lawsuit and demand compensation alleging a leak of information to the opposite party or even just negligence or deficient services.
In such cases, the law firm is at risk of losing its reputation as well as the services of a good lawyer.
IT companies also face the risk of lawsuits and compensation demands in cases when a software engineer’s error or a glitch in software causes a website to crash or leads to a significant loss of data. Hence, IT firms need to stay insured to save them from legal costs and the hassles of court proceedings.
Accounting and Financial Consulting Companies
Accountants handle confidential and complex data every day. Financial advisors too are trusted with critical information based on their reputation and experience in planning finances. In case of a leak in information or the client suffers a major loss, the consulting firm may have to deal with disrepute. The professional indemnity cover will help in such cases to protect the accountants from such professional mishaps.
Construction companies dealing with big building projects can be held liable if the client is unsatisfied with architectural design changes, use of low-quality material, delays in delivery, or any such issue. In such situations, indemnity insurance covers the construction company from legal costs and lawsuits.
Professional liability cover should be bought keeping in mind the latest industry trends and risks. This is one of those insurance plans where you need to anticipate the possible future of your organization.
SecureNow, an online insurance advisor, can guide you into your buying process and present you with quotes from multiple insurers so that you can be thorough before making your decision.