Professional Indemnity Insurance
Regardless of your years of professional experience, there’s always a possibility to make a mistake in the course of your duties. If you are held liable to have provided inadequate services or advice to a client, professional Indemnity insurance covers for the legal expenses in defending a claim in court. It also compensates your customers, through cash payments to resolve the slip-up. Professional Indemnity covers against scenarios, including loss of client documents, court expenses, judgments, and awards.
Cover is available for:
- Medical Doctors and medical aides
Is Professional Indemnity Insurance Compulsory?
In reverence of industry regulatory requirements, business professionals require PI insurance. Professionals working under contracts like management and business consultants as well as IT contractors need PI insurance to engage in their profession.
However, if you are not officially obliged to buy PI insurance and an event occurs where you disagree with your clients, you will part with thousands of shillings to cater for the court proceedings and or claims after that. This is in addition to the cost of time spent in and out of court defending the claimant’s allegations.
No matter your business size, you could be financially vulnerable if a claim is brought against you. Most professionals endeavor to offer the best services possible, but mistakes, negligence, and disagreements do occur. With the adequate shield in place, PI gives you peace of mind that your professional activities are covered. Professional indemnity insurance compensates losses or incidents such as mentioned above.
What Limit Of Professional Indemnity Do I Need?
Selecting a professional indemnity cover limit depends on your company’s position. If you need coverage for a particular contract, it’s possible the client will have specified a minimum sum. This is often the case for large commercial corporations too, so check the cover limits before purchasing coverage. Otherwise, consider the worst case scenario, if you made a mistake while handling your clients, which cannot be reversed, you must bear the cost of putting it right.
Consider any legal fees and losses that could be brought to you by your client because of negligence or some other errors. This policy mitigates against such mistakes, protecting professionals from legal liability for acts of carelessness in the course duty. Remember, you do not have to be wrong to be sued. Professional Indemnity coverage pays for the costs of defending legal battles brought against the insured in their practice.
To enquire more about PI insurance, call us on +254 714095497. We are professional insurance experts and will be glad to take you through the available cover options.