HAVE YOU GOT YOUR BUSINESS PROFESSIONAL INDEMNITY INSURANCE?

Mistakes are the way of life. You commit few to learn something or the other in life. But some mistakes, knowingly or unknowingly can land you into a big trouble. Especially, if your are in a business of providing services, advice, design, information, consultancy services, etc.

A little negligence here or there, an omission or an error can become a cause of a big loss and can even get the third party to sue you for the same. That’s where Professional Indemnity Insurance comes to your escape.

Here’s what all you should consider, so you can ask for the rightful:

An insight to Professional Indemnity Insurance Who must go for Professional Indemnity? How does Professional Indemnity work? What should be the cost & cover for Professional Indemnity?

In case of losses suffered by your customer/third party as a result of a sudden mistake or negligence, professional Indemnity Insurance covers you against a lot of scenarios. This could be anything right from loss of data, breach of copyright or confidentiality, defamation, loss of goods, to name a few. So the losses occurred are covered up by Professional Indemnity insurance and you don’t have to pay off thousands or lakhs of rupees for compensation.

1. AN INSIGHT TO PROFESSIONAL INDEMNITY INSURANCE

Though many know the art of running a smooth business and having health relationships with their customer, but a mistake can put it all at risk. Hence, any company that offers services, designs, goods, consultation, etc. should consider having professional indemnity insurance. It also depends on the kind of work you are into and how risky is your business or products in your business, that too can help you to decide whether or not to go for Professional Indemnity insurance.

2. WHO MUST GO FOR PROFESSIONAL INDEMNITY?

Professional Indemnity comes into work on ‘claims made’ basis. Claims Made means that the claim is made and the company is notified about the same within the period of insurance. But in case the policy was cancelled or was not renewed, cover will end and hence the claim in that case will not be covered. Therefore, it is important to know and have your professional indemnity insurance in place and should be maintained and renewed on time, so your business stays insured.

3. HOW DOES PROFESSIONAL INDEMNITY WORK?

Cost of the policy and the premium to be paid out is worked out separately for different companies, as there are several criterions taken into account basis which the cover is worked out. Some of the key factors that may be considered are: nature of work and business, number of employees, what are the clients you work with and what is the reach of your work? And more of these points help them determine the kind of cover and cost of premium.

4. WHO HOW DOES WHAT SHOULD BE THE COST & COVER FOR PROFESSIONAL INDEMNITY?

Apart from this there are also legal costs involved and you can also go for additional purchase of debt collection services, commission insurance, cash in transit and management insurance, and likewise.

Buying Professional Indemnity insurance is securing the set up you are working in. It is wise to safe than sorry tomorrow, especially if your business involves risky dealings that can cause a loss to the third party. In case of confusion, it would best to seek advice of your insurance provider and trust an established insurance brand like L&T and the likes.

Hope the above information shared with you will be helpful for buying a new insurance policy.

If you are interested in buying general insurance India, please feel free to reach us from any of the touch points mentioned below and we'll be happy to assist you.

Call us Toll Free No. : 1800-209-5846or SMS 'LTI ' to 56070 58 (56070-LT)

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