Professional Liability Insurance: The Basics

The concept of professional liability insurance is based on arising demands for securing a remedy for undisclosed and hidden professional situations where professional may need to suffer heavy financial losses. In some country, practicing without a relevant professional policy is barred and you actually cannot practice freely in those countries. So, it is always better to know about those policies to get your professional aspirations fulfilled while practicing your skills and talents.

Internet provides you the most convenient and suitable way to secure relevant information regarding the usability of professional liability insuranceYou can also search for the different companies which provide optimal professional liability insurance for meeting the demands for professionals. So, gather your information and get the policy that matches your needs and requirements well.

Need for Professional Indemnity Insurance

Professional indemnity insurance is slowly catching the nerves of people in providing safety and security to various professionals around the world. It includes traditional professionals to today’s modern professionals like architects, engineers, insurance brokers, IFA's, solicitors, surveyors, accountants, computer consultants, business consultants, estate agents, solicitors, translators, pr consultants, environmental consultants, Internet Service Providers (ISP), website designers, programmers and Directors and Officers Insurance Quotes and several others.

Without having adequate risk coverage, it is almost impossible to run away from various professional risks while practicing in the real world. Nowadays, risks are so high that companies are taking almost everything to eliminate the associated risks. Not only company but directors and officers are insured of any professional errors and omissions to get rid of any third party claim. Especially vulnerable are the new internet companies, many of which only recently been formed particularly if there is venture capital funding or shareholders to consider.

So, professional indemnity is considered as an important tool to practice as a professional.

Professional Indemnity

Basics of Professional Indemnity

As it name suggests, professional indemnity (PI) insurance is insurance given to cover the risk bear by professionals during their tenure of service provided to the second party. However, it does not cover contract work, e.g. core-logging, drilling, mapping (unless interpretation and/or advice is required).
The main feature of professional indemnity is its legal liability. Indemnity insurance does not cover statutory or criminal liability. In simple words, this kind of insurance give you relief from the party that might file a case against a professional if that party suffered loss based on the professional’s opinion or advice. It does not cover State-inflicted penalties or criminal charges.