People opt for different types of insurance plans to safeguard their life, assets and residence, etc., from unforeseen accidents and various mishaps. However, regular insurance policies may not be enough for safeguarding you in certain critical situations and you may require coverage in the form of specialised policies. This is why professional Indemnity Insurance has become much sought after in recent times. This insurance plan provides coverage to specific service providers or professionals offering advisory and solicitation services to their clients. When things go wrong and the clients end up losing money or assets owing to numerous unforeseen factors, the professionals use these insurance plans to stay protected from legal hassles and monetary claims.
Who can benefit from it?
While a majority of people opting for professional Indemnity Insurance are legal advisors, doctors and tax consultants, this can be beneficial for people belonging to various other professions too. For example, graphic designers, chartered accountants, architects, fitness trainers can also gain from these insurance policies. In short, if your profession is about offering specialised service or advice to clients whose finances can be affected by following the advice or service- you should choose one. Even mid-sized businesses and freelance service providers opt for this insurance nowadays.
What is covered by typical Professional Indemnity Insurance policies?
Most of the plans cover the following scenarios:
- • Professional negligence
- • Loss of vital documents /data
- • Involuntary breach of copyright
- • Defamation and libel
- • Loss of money/assets
Types of Professional Indemnity Insurance
Various firms are offering professional Indemnity Insurance these days and most of these plans can be segregated into 2 categories. An ‘aggregate’ policy means it will cover the claim amount equaling full limit. An ‘Any one claim’ policy will cover the full amount of individual claims made while the said policy is in effect. So, if two $65000 claims are made within the policy duration where the maximum coverage is $100000 – the insurer will pay $130000, in ‘Any one claim’ policy. However, in an ‘aggregate’ policy with a maximum limit of $100000, the insurer will pay $100000 for the claims and remaining $30000 has to be arranged by the insured buyer.
Exclusions to keep in mind
You need to keep in mind that professional Indemnity Insurance will not cover you from all risky situations leading to damage and loss to clients. For example, if investigation reveals the damage to client assets was caused by carelessness on your part or your deliberate acts caused financial loss to the client- the insurance will not cover you. If you commit an act that is deemed illegal from a professional perspective and that leads to client’s loss, you will not be covered. The regular accidents which are not related to your workplace or profession are not covered by these policies.
Choosing the right insurer
In Australia, several insurance firms offer professional liability insurance nowadays. You need to pick the right contender to ensure well eking of your venture and save it from legal hassles. For comprehensive and reliable coverage you should browse the link.