YOU ASK:

What occupations does professional indemnity insurance cover?

WE ANSWER:

Any professional whose competence and performance have a direct impact on other people (customers or patients) can purchase professional indemnity insurance which will provide coverage in the event of a liability claim against them. Certain occupational areas are more prone to liability risk than others.

Professionals, such as doctors, surgeons, architects, engineers, attorneys, financial consultants, brokers, real estate or insurance agents, are all exposed to very high liability risks since their negligence and errors can cost their customers or patients a lot of money, pain and suffering, and even their lives. This is where professional indemnity insurance comes - designed exclusively for the professions mentioned above, it indemnifies the insured in the event that they are found guilty of professional negligence and have to pay damages to the injured party.

Characteristics of Professional Indemnity Insurance

Professional indemnity insurance is more commonly referred to as professional negligence insurance, or professional liability insurance so if you come across these phrases, be assured that they both apply to the same type of coverage. Professional indemnity insurance does not provide protection against general liability.

There are two common types of professional liability insurance that can be purchased by professionals, depending on their occupation and the risks they are exposed to:

  • Healthcare professionals, such as doctors, surgeons and nurses can purchase a special type of professional liability coverage, called Physicians medical malpractice insurance. It protects doctors and surgeons against medical malpractice claims by patients who have been harmed as a result of a medical incident.
    • Coverage A outlines the conditions in which the insured can be financially indemnified in case they have to pay liability damages.
    • Coverage B is designed for physicians working in medical groups, such as surgeons.

    Physicians shouldn't be put off by the high rates of Medical professional liability insurance, for if they don't buy it, they might end up in a financially disastrous situation as a result of which they might even have to stop practising their profession.

  • People whose professional duty it is to give advice, or who owe high duty of care for their customers, such as lawyers, insurance agents, architects, engineers, consultants, brokers, etc. run a high risk of causing their customers loss due to errors or omissions. These professionals can protect themselves against liability if they purchase an errors and omissions policy specifically designed for them.
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