Doctors Professional Indemnity

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According to press reports in Nov 2017, a police case was filed against the doctor at Gorakhpur’s BRD Medical College about an attempt to murder. It concerned the death of over 20 children at the health facility. It’s human nature to make mistakes. However, not all mistakes are forgivable, especially if someone has incurred losses while depending upon your advice or availing your service. In today’s competitive business environment, the simplest slip can prove expensive, and the ensuing litigation can be expensive both for your funds and reputation.

It’s not only in the medical field where legal cases have piled up. In fact, other professionals, like interior designers, lawyers, chartered accountants, etc. are also facing the brunt. Take this case: In 2015, a case was filed against an interior designer in Chandigarh by two residents who sued him for not completing the work within the deadline.

In professions where you impart service or advice to others, you always run the risk of being sued by the other party, especially clients. In such cases your client  may demand for compensation as well. This is where professional indemnity insurance can come to your rescue.

Also called, errors & omissions (E&O) insurance policy, the professional indemnity insurance safeguards you against liabilities which may arise from negligent services or advice given by you. Thus, it helps you protect your market reputation and gives you the freedom to attend to your profession with confidence.

Understanding Professional Indemnity Insurance

E&O insurance policy gives ‘indemnity’ or protection, if a company or its professional commits an error and thus, the policy covers legal expenses which may have to be paid in the court. And, if the verdict goes against the policyholder, the insurer also pays compensation to the plaintiff.

A professional indemnity insurance policy works to safeguard professionals against a number of risks or against losses which could arise due to professional negligence, loss of documents or errors while performing one’s duty, etc.

Significance of Professional Indemnity Insurance

Usually, businesses can be sued for the mistakes which they make. If a client files a legal suit, the company or professional could suffer and might find it daunting to recover itself. This makes it essential to buy professional indemnity insurance policy. Thanks to the policy, professionals can provide services to their clients without worrying about the possibility of errors. The following benefits of professional indemnity insurance make it a must-have cover:

  1. Reduce risk: You do not have to worry about paying for legal cases from your pocket for unintentional errors you make. The policy helps professionals to pursue their business without fretting about the cost of potential claims.
  2. Build Trust: In certain situations, E&O insurance policy also acts as a viable marketing tool. Clients know that if you make a mistake, you will take adequate measures to fix it. Having professional indemnity insurance in place will give assurance to your customers that you will take the complete responsibility for your business in case of any error. Thus, it will help you win their trust as well.

A Quick Glance At the Benefits of Professional Indemnity Insurance:

  • Comprehensive coverage to cover various types of risks and losses
  • Wide protection against legal expenses
  • Hassle-free documentation
  • Option to increase or decrease the sum insured as per your needs
  • Flexibility to customise insurance policy
  • Expert support

Who Should Buy Professional Indemnity Insurance?

Apart from big companies, professional indemnity insurance should be purchased by individual professionals, like doctors, surgeons, engineers, lawyers, etc. Anyone who imparts services or advice to its clients should think of buying professional indemnity insurance.


The Final Verdict

The success of your business is the result of your hard work and determination. It is unwise to assume that mistakes will not happen in your business. Therefore, securing it with the appropriate professional indemnity insurance is the need of the hour.