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Professional Indemnity Insurance Uk Is Becoming A Must Have For Businesses
If you run any kind of business where you deal with the public on any level
, you must have professional indemnity insurance because it gives you coverage for any claims that may be brought against you (the policy holder) in case of professional negligence. In other words it provides insurance coverage only in cases involving negligent acts, omission, or errors while in the act of carrying out your business.An indemnity agreement decides the financial responsibility in most instances. As an example, private indemnity protects against breach of duty claims such as a promise to complete a job in a specific amount of time (30 days to complete a roofing job). Lawyers and doctors are commonly required to obtain this type of insurance, but professionals of any type will find it beneficial to carry it as an indemnity agreement decides where the financial responsibility lies in any given case.
When the indemnity agreement involves medical insurance it will be specifically stated what the financial responsibilities of the insuring party (the medical insurance provider) are. Coverage for any and all medical expenses will be paid by the insuring company. Failure to pay as set down in the contract will be due cause for a suit for breach of contract.
Having basic coverage provides financial protection for cases involving mistakes which result in the insured being sued or claims filed against them. This generally only provides cover for cases involving negligence. Additional coverage will include breach of duty, intellectual property, civil liability, and disagreements involving loss or damage of records or data. As an example, the case of an accountant who fails to keep financial records for a client, and results in that party being fined.
This insurance coverage may result in high premiums being paid but it can prove well worth it if that professional is sued only one time. This type of insurance has many different needs as each professional may have differing requirements for cover. Not many insurance companies actually provide this form of coverage so it is advised to check with an insurance specialist to see the exact type and how much cover each individual professional may require. There are many instances where this type of cover in not necessary.
For those professionals in high risk categories such as doctors and lawyers, there is coverage that goes beyond the basic and may include indemnity for civil liability such as libel, slander, and breach of contract. This does not include malpractice and that requires different coverage. Other coverage includes loss of professional data and documents, defamation, dishonesty, intellectual property, and negligence.
There are two forms of professional indemnity insurance coverage and they are voluntary and involuntary. Involuntary is required by federal or state law. Of those professions who commonly purchase voluntary professional insurance are consulting firms, financial and accounting services, and info technology. Both legal and medical professionals additionally find it beneficial to obtain involuntary professional cover as well. It will only take one instance of negligence, resulting in one law suit against that professional, to ruin them financially.
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