Professional Indemnity Insurance is designed to protect your business against any claims arising from negligence advice or services. It covers for people working for a business that involves risk.
Professional Indemnity Insurance policies are purchased by business owners to protect their companies from financial liability in case of claims of negligence. The individual under this is at the same time provided with assistance by Professional Indemnity Insurance when fighting lawsuits. Professionals like accountants, engineers and architects can choose several types of this insurance plan and make their business well protected.
By the time the professionals got this insurance they automatically transferred their liability to the insurance company. The company now will be the one to cover the legal fees when a lawsuit is brought against an insured professional. This is advantageous for them considering the cost of thousands of dollars when they personally shoulder the legal fees. Yet the insurers is required to conduct an investigation to the claims made against their clients where they pay the award amounts equivalent to the coverage policy limit if the insured is found liable in court.
There are several types of insurance plans such as errors and omissions, malpractice and professional liability policies that are considered as Professional Indemnity policies. Doctors, lawyers, accountants, architects and engineers are the common professionals who are purchasing these types if policies. What do these policies cover? Actually it covers negligence and mistakes which were committed by the insured when damage is done into a third party while performing the services.
However a professional can be granted or denied by an insurer upon applying for a Professional Indemnity Insurance for several reasons. These factors may include business locations, claims history, industry and coverage amount. The degree of risk reflected by the premium amount is determined by these factors. The insurance company will raise the premiums if a professional is granted a policy but poses a higher risk than standard applicants.