Professional Indemnity Insurance

Professional indemnity insurance, abbreviated as (PII) and also known as Professional Liability Insurance, is a form of liability insurance that assists in protecting professional advice, and service-providing individuals and companies from bearing the full cost of defending against a lawsuit or a negligence claim. These are the causes for legal action being taken against the fraudulent instances. The legal actions are taken considering the intensity of harm that is caused to the insured. In order to protect his interests, insurance companies adapt this format and provide a cushion for the employee with respect to any legal proceedings. Professional liability insurance is required by law in some areas for certain kinds of professional practice,

Let us have a look at some of the case studies under professional indemnity insurance.

Even the most reputable company can find itself in a dispute with a client over a mistake. There can even be a dispute when no errors have been made. Having professional indemnity insurance helps you protect the business you have worked so hard to build up.

Professional Indemnity (PI) insurance is liability insurance that covers your business legal liabilities in the event of a third party taking legal action against you, claiming to have suffered a loss as a result of advice you have given in a professional capacity.

Who needs professional indemnity insurance?

You might be thinking exactly that, 'do I need professional indemnity insurance? I’m not an Accountant.' A 'professional' is generally regarded as any person who offers specialist advice, design specification or other professional services and can include Designers, Consultants, Advertising Agents, Translators and Private Investigators amongst others, as well as the more ‘traditional’ professions such as Accountants, Surveyors and

This resulted in a reduction in sales, the resultant income and a poor image of the brand. The consultant's client claimed successfully for loss of income and damage to its brand. The costs of the claim were covered under the consultant’s professional indemnity insurance.

• In the course of making a back-up of a client's hard disks, which was part of the service he was contracted to do, an IT consultant inadvertently overwrote all of the data on the client's hard drives. The data could not be retrieved. The client sued for damages.

Design

• As a result of inadequate design by an engineer, air extraction and temperature control equipment in a restaurant failed to work properly. The restaurant was closed pending repairs. The claim was settled at Rs. 25 Lakhs plus costs under the engineers professional indemnity insurance.

Making sure you have the right professional indemnity insurance is important, As you can see with these examples, clients may make significant claims against you and without insurance in place you may find these difficult to meet.

Contact your local insurance broker for advice and help on getting the insurance cover you need for your profession. It is easy to help and you could secure your incomes more concretely this