What Does A Professional Indemnity Insurance Plan Cover?
Every year, more than 138 billion individuals get affected worldwide due to misdiagnosis, as per a WHO statement. Such a scenario of errors and omissions prevails across professions along with the medical sector. Liabilities arising out of such mistakes or other associated reasons are thus common across professions.
It especially holds true for specific professions like doctors, engineers, chartered accountants, lawyers, etc. While in most of the cases, the errors are unintentional, the repercussions these professionals end up with can be substantial. Like, a patient’s family can make a legal claim which may or may not be validated but ends up creating unnecessary financial strain. Not to mention, the compensations sought can be high enough to create a lasting financial liability.
In such cases, a professional indemnity insurance policy can be handy. It can also effectively save their businesses from any significant financial setback.
What is an indemnity insurance policy?
Every practicing professional always needs to be cautious about how to keep the business protected at all times. Nevertheless, financial liabilities arising out of mistakes, errors, omissions, or any wrongful claims are unavoidable.
In such cases, it is very much possible that they face legal hurdles. Nonetheless, such legal involvements often result in financial liabilities, either as fees or charges involved in defense as compensation or as damage to business reputation.
Needless to say, among all the professionals, doctors are the most susceptible to such incidents. A single legal charge against them from patients, their family, or a third party in most of the cases can cause a sizable financial setback. It is when a professional indemnity insurance policy for doctors comes to the rescue.
The reason for such a claim can be anything, from error in diagnosis and professional negligence to a faulty third-party charge.
However, just like other insurance policies, there are some clauses in it as well. Hence before availing an indemnity insurance policy, individuals need to get a transparent idea about the grounds on which they can make claims precisely.
What does an indemnity insurance plan cover?
The following are some of the grounds for which you can make an indemnity insurance claim.
- Third-party damages
- Defense costs
- Breach of confidentiality
- Loss of documents
- Libel and slander
- Claims only based on professional services
- Any damage or loss incurred during professional service discharge within the territory under coverage
These clauses, however, vary with the insurance provider. Several financial institutions in India like Bajaj Finserv offer a professional indemnity insurance policy that covers up to Rs.1 crore against nominal premium payment. Further, you can opt for a loan for professionals as well to fulfill your business’s funding needs.
They also provide pre-approved offers for loan processing without much hassle. It also saves a lot of time as they don’t need to complete lengthy documentation. This offer is also available for a range of financial products such as business loans, personal loans, etc. You can check your pre-approved offer by entering your name and contact number.
What are the features of a professional indemnity insurance plan?
Once individuals know the coverage they need to look form to choose the best professional indemnity insurance policy for doctors or any other professional, they also need to learn about some typical features that include –
- High coverage
- 24/7 customer support
- Easy claim application
- Prompt claim processing
Nonetheless, if you have any specific coverage requirements, you can always talk to your preferred insurer. Regardless of the profession, an indemnity insurance policy should be a must to avoid any financial liabilities out of unfavorable legal situations.
Hence, with this, it is quite apparent that financial loss is one of the significant risks doctors carry if they don’t have a professional indemnity insurance plan in place. Apart from that, several other factors affecting their practice include defamation, harassment, etc. Hence, it is always wiser to remain cautious while practicing so that they can reduce the risks of such occurrences.
Professional errors and omissions are almost unavoidable at some point in one’s career. However, it can be significantly inconvenient if it involves legal claims for the professional services rendered.
Such issues are prevalent across professions like lawyers, chartered accountants, doctors, engineers, and more. While in most of the cases, the errors are unintentional, the damage arising out of it can be financially deterring.
Thus, to protect the business from such losses, the likes of doctors and CAs need to take some measures, like availing a professional indemnity insurance policy for doctors or other professionals. The specific coverage benefits under this insurance policy include financial losses arising out of instances, like third-party damages, documents loss, breach of confidentiality, claim only against professional services, etc.
An insured individual can also make a claim for several other grounds. Top financial institutions offer a claim amount of up to Rs.1 crore against a nominal premium alongside providing the likes of loans for professionals for overall financial health.
Individuals should also look for some features that an indemnity insurance policy should come with. It includes a high coverage, easy claim processing, reliable customer support, and a simple claim application.
Nonetheless, professionals should always be extra cautious while offering any professional service to avoid any unpleasant situation.