Professional Indemnity Insurance is important for those who are in the business of selling knowledge or skills.
Coverage
If mistakes have been committed in some or all the services provided or if the job has been done negligently, then the clients might seek compensation. These situations are taken care of by Professional Indemnity Insurance. This coverage also includes legal expenses. Most professionals take Professional Indemnity Cover. It is a must for the Attorneys, chartered accountants and financial advisers. Architects, designers, PR agencies, advertising agencies also opt for this insurance.
Check the Policy
One important feature of this policy is that the coverage must be in force both, at the time of the event and also when the claim is made. This is to ensure that the claim is made immediately after the occurrence of the event. A “run-off” coverage period is offered to the professional for the future if they plan to cancel the policy or close or retire from the profession. If the insurer has to be changed, either a “run-off” coverage has to be arranged or an agreement has to be obtained from the new insurer ensuring that the new insurer will accept new claims for prior incidents.
Proper Documentation
In order to minimize such claims, the most important thing is proper documentation. Specific responsibilities must be maintained in the contracts with clients. Complaints must be taken up with immediate effect. Since this is a specialized field of insurance a specialized insurance adviser should be appointed to do the same.
