Professional Indemnity

Professional Indemnity Insurance – An Overview

Literary, professional indemnity insurance is all about insurance associated with different occupation including lawyers, accountants, doctors, journalists etc. With the development of society, the traditional meaning of occupation has extended and become a more serious issue to handle.

Practically, professional liability is basically deals with any negligence during the course of service provided or failure of the professional services. However, the modern application of professional indemnity insurance has extended beyond this. In short, professional indemnity insurance is given to cover every professional liabilities occur during the course of services provided to others.

According to law, it is the duty of a practicing professional to give satisfactory services to others. Generally, a contract is drawn to describe the terms and conditions of the services and in case of the failure of the contract, the second party has the right to file a case, asking for compensation for the damages. Here comes the role of professional indemnity insurance.

Professional indemnity insurance differs from profession to profession according to the consequences of their professional acts. For different types of losses, different policies can be given for example, for a physician, negligence while treatment etc.