Professional Indemnity (PI)
What is Professional Indemnity Insurance ?
Professional Indemnity Insurance is intended to safeguard the business interests of architects, engineers, chartered accountants, attorneys, and medical practitioners from legal claimsfor error, omissions, and professional neglect for both the principles and their employees.Whether oneoperates a small or large firm, they may be accused of offering poor services, advice, or designs that may result in monetary losses for their clients.
Who should purchase this policy?
Professional indemnity insurance can be availed by the following professionals:
- Physicians, surgeons, cardiologists, pathologists, and other medical professionals
- Engineers, architects, builders, and interior designers
- Medical establishments such as hospitals and nursing homes
- Lawyers, advocates, solicitors, and counsels.
- Chartered accountants, management consultants, and financial accountants
Benefits
Professional indemnity insurance protects you against a variety of circumstances, including:
- Professional negligence
- Unintentional breach of intellectual propertyor confidentiality
- Loss of documents or data
- Claim investigation costs
- Loss of goods or money
- Defamation and libel
Exclusions of the Policy
- Intentional or willful damage
- Illegal acts
- Terrorism
- Employment dispute
- General Liabilities
- War or nuclear perils
How to select the Sum Insured?
The sum insured for Professional Indemnity Insurance Policy is determined by the indemnity limit. The limit is known as the Any One Accident (AOA) limit and the Any One Year (AOY) limit, and it is set per accident. The insured can select the AOA-to-AOY ratio from the alternatives listed below:
1:1
1:2
1:3
1:4
However, the AOA limit, which is the maximum paying amount during a claim, should be determined by considering the type of the policyholder’s business as well as the maximum number of people who might be impacted or the maximum property damage that is predicted to occur after an accident. In general, the AOA limit is limited to 25% of the AOY limit.