Professional Indemnity Insurance for medical business

If any of the pharmacists, therapists, nurses and doctors want to enter the medical business then the first thing to do before entering the business is to buy professional indemnity insurance or else you might land up spending more then what you earn. Professional indemnity insurance is not only for hospitals and doctors but also for every individual who is the medical field. There are various types of professional indemnity insurance plans for medical business and most of them cover the charges of malpractice. The professional indemnity insurance that you buy for your business depends on the site of your business, demographics of the client and your field of specialization.

Professional liability insurance and general liability insurance

The main purpose of insurance is to protect a business or a person from the risk of theft or natural disaster. General liability insurance takes care of these risks whereas the professional liability insurance is targeted towards specific professional fields.
Professional liability insurance and general liability insurance is very much the same but at the same time very different. The basic difference between the two puts them in separate categories. Knowing these differences is important for a businessperson to choose the suitable insurance scheme for the business.
General liability insurance adheres to the claims of property damage or bodily injury liability. General liability insurance covers environmental impact, injury and casualty. Whereas, professional liability insurance addresses the negligence, which is, associated with professional services that is financial and not physical.
Professional liability insurance is important as it address the indirect impact caused by conduct. Professionals need to be careful while performing their duties. Therefore, it is very important to have proper general liability and personal liability insurance to protect the business from any financial damages.

Professional indemnity insurance: in plain words

Professional indemnity insurance is a kind of insurance policy that can protect your professional interests to a great extent. Irrespective of your nature of work and responsibilities associated with your profession, you can get adequate risk cover for all those uncertain and embarrassing situation that might come during the course of your normal day business. It protects your business against compensation sought by a client if you have made mistakes or are found to have been negligent. The amount of indemnity would depend on the risks associated with your profession and your annual turnover.

Apart from protecting professional risks, pi insurance also covers freelancers too. They can enjoy equal protection as professionals can enjoy by having a good professional insurance policy.

Professional Liability Insurance: What you’ll be covered for?

Any professional who practices his or her special skill or knowledge in exchange of a particular fee may consider taking out professional liability insurance. In fact, many countries such as UK and Australia do not allow professionals without having adequate professional insurance cover. Hence, taking suitable insurance policy is essential. Let us see, how professional insurance can protect the interests of a professional:

The insurance protects a professional against compensation demanded by a client in case you as a professional have made mistakes or become negligent in some or all of the services that you have offered to the concerned client. Professional indemnity insurance will also cover any legal costs.