Professional indemnity insurance is a protective cover to pay up any third-party liability arising due to any kind of error committed involuntarily in professional position that may have been harmful to the said party. This liability insurance cover is available to all kinds of professionals but is especially beneficial to people in the medical, legal and accounting or consulting professions.
No person is perfect in his work and there are always chances of error due to negligence. But, errors committed by doctors, lawyers, and financial advisors, though seemingly negligible, may lead to a loss in unfortunate circumstances for their clients and other people. In case these clients sue these professionals, they may be forced to forgo their personal finances and reputation in the absence of a suitable liability cover. This makes the indemnity insurance the most essential need for certain organisations that require the services of these professionals to maintain its reputation and save the company and these personnel form legal lawsuits.
Need for Professional Indemnity cover for specific organisations
- Hospitals and Nursing Homes
The hospital staff includes medical practitioners, doctors, gynaecologists, nurses, interns and compounders. The job of a doctor is to treat the patients and conduct critical operations whenever required. There are many complex scenarios that a doctor might face while he treats his patients or conducts deliveries.
In case a patient dies during such situations and his family feel that it is because of the neglect of the concerned staff and doctors; the hospital is at the risk of a legal lawsuit by the family. Such a lawsuit will not only affect the concerned doctor but also the reputation of the hospital would be severely affected.
A professional indemnity insurance for medical practitioners can save the hospital and its staff from the legal or compensation costs in such a scenario. So, it is highly recommended that all the hospitals must avail this policy to save its reputation due to any involuntary mistake committed by the staff.
- Law Firms
Law firms are run through the services of reputed lawyers and legal consultants. Lawyers fight for people to save them from any unwelcome situation of disrepute resulting from professional or personal discord. They are the most trusted lot of their clients. The clients need to share every bit of informat0ion with their lawyers to enable them to form a strong case in the court on their behalf. But, if supposing, a lawyer loses the case of his client or is blamed for leaking important information to the opposite party, the client might demand compensation for the same or sue the firm.
In such cases, the law firm will be at the risk of losing its reputation as well as the services of a good lawyer.
- IT Companies
IT companies are responsible for creating the virtual world that has today become our lifeline. In case of even a minute mistake by any software engineer, a whole website can crash in a fraction of a second stopping the work of all its users. In case this happens with the most important websites, it can be dangerous for the concerned IT firm.
It thus needs to be prepared with a protective cover that will enable it to save itself from the legal costs and donate time to resolve the issue.
- Accounting and Financial Consulting Companies
Accountants handle complex and critical data every day, some of it is not to be leaked in any form. Similarly, financial advisors are trusted by their clients based on their reputation and experience to help them plan their finances for retirement or in general. In case any such information is leaked or the advice leads to huge loss to the client, there is a risk of disrepute to the consulting firm. The professional indemnity cover will help in such cases to protect the employees from such professional mishaps.
- Construction Companies
Generally, construction companies are given huge building projects in which the services of several engineers and architects are required. In case the building thus formed does not satisfy the client due to change in its architectural design, use of poor material or any such issue, the construction company may be held liable for it. An indemnity insurance will enable the construction company to counter the cost of legal lawsuits in such a case.
Professional liability cover should be bought carefully, keeping in mind the latest industry trends and risks. This is one of those insurance plans where you really need to anticipate the possible future for your organisation. SecureNow, an online insurance advisor, can guide you in to your buying process and present you with quotes from multiple insurers, so that you can be thorough before your decision.
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