As an individual or a business entity, you need to have yourself protected against unforeseen events, and the protection essentially includes insurance covers. One such insurance cover is professional indemnity insurance, which covers the compensation awarded to a client in the event of a lawsuit against those who provide professional services. Following are a few professions that need professional indemnity cover:
IT professionals: At times, projects undertaken by IT firms don’t go as planned. Although, minor aberrations to the specified guidelines can be reworked or resolved over a discussion with the client, it is not possible when the damages are significant. In such events, professional indemnity insurance can save you from the consequences of a huge financial loss.
Recruitment agencies: In the event of an accident due to negligence of a staff member who was recruited by an agency without proper reference checks, the client can file a lawsuit against the agency. The agency can also face lawsuit if confidential data is stolen or lost from the client’s office and the employee entrusted with access to the data is recruited by the agency. Small agencies may not have the resources to deal with such incidents and hence, need to be covered.
Business consultant: If you are working as a consultant, advising businesses on a day-to-day basis, then any loss resulting from the services provided by you can lead to a legal claim. However, if you have professional indemnity insurance, such events can be taken care of and you can avoid an impending financial loss.
Fitness trainers: As a fitness professional, it is absolutely necessary for you to ensure a high quality of service. However, often we cannot do much about unexpected turn of events. An injury during training may not only damage your reputation as a trainer but can also lead to a legal battle. Your clients can also file lawsuits if the services provided by you do not conform to the desired level of your clients.
Teaching professionals: Similar to fitness professionals, teachers also need to be prepared for unforeseen events. An injury in the classroom or complaints of below par tutoring can result in adverse consequences.
Apart from the ones mentioned above, various other professionals also need to be covered under professional indemnity insurance, including but not limited to designers, wedding planners, and photographers. Although it’s mandatory to have professional indemnity insurance for certain professionals, it’s advisable to have yourself covered, even if you are not obliged to, if you fall under the categories mentioned above.
There is an inherent need today to ensure that every facet of your life, right from general insurance, life insurance as well as goods and services, are insured. If you do not pay heed to this, you may end up with serious debt and straddled with long, drawn out payment hurdles. This is extremely imperative while shipping prized cargo across countries or continents. Marine insurance covers the risk of goods from the point of departure until the cargo reaches its destination, and this is where the policy ends.
Time Policy insures the ship for a fixed timeframe. It is possible to extend the duration for a longer period. Another feather in the cap is the mixed policy hull insurance transit coverage. The ship is assured of a cover for a mixed and timely duration â ideal for ships operating on a particular route. To ensure that there is no serious damage to the cargo or passengers, it is a necessity for the owner of the vessel to keep the policy up-to-date.
Transit insurance offers coverage for cargo and hull insurance. Both are imperative to a ship owner as well as the exporter. This ensures that all the goods are covered while in transit, from the point of origin to the destination point. In the past, the concept of inland marine insurance was established so that goods were insured while traveling at sea. Thankfully, it encompasses a wider range today.
There are different types of marine insurance policies under this umbrella. The sailing vessels policy takes care of the vessel in case of collision, burning or sinking at sea. An annual insurance policy provides an assurance cover of goods that belong to a specific assured party. The insured amount is calculated based on the value of the goods. It is essential from every aspect, from the time the ship leaves with the shipment, to the time it docks to ensure that every facet is taken into account.
Floating policies are an ideal form of transit insurance taken for a large amount for gargantuan trade. To send off the shipment, a declaration is a necessity. The open cover contract is an agreement created between the assured party and the insurer. The scope falls under the honor bound scheme where separate policies are not a necessity for every shipment. As an open cover policy, it works rather well for regular cargo shipments once the declarations are made.
An insurance is like a contract, in which a legal entity or an individual receives financial protection or reimbursement from an insurance company, in case of any loss incurred. This contract is called a policy. Insurance policies are used to protect the individual or a company from financial losses, small and big, that may have resulted from damage to the insured or to his or her property, or from liability for the damage caused to a third party.
While choosing an insurance, it is very important to keep in mind the components of the insurance â the premium and the deductible amount. The premium is the cost of the insurance paid on a monthly basis. The premium varies from one insurance company to another, based on the risk profile of the company or individual. The deductible is the out-of-pocket expense borne by the insured whenever he or she makes a claim.
There are different types of insurances, which can be availed by any company or individual. According to the business requirements, there are special kinds of insurances. Some insurances are need based â like kidnap and ransom (K&R) insurance, medical malpractice, professional indemnity insurance, also called errors and omissions insurance.
Scope of Professional Indemnity Insurance:
Professional Indemnity Insurance is a type of insurance that protects companies and individuals against claims made by clients for negligent actions and inadequate services. This insurance policy usually covers the cost of the court case as well as the settlement amount as specified in the policy. Commercially busy places have many agencies offering this insurance. For example, Professional Indemnity Insurance in Singapore is very common
Professional Indemnity Insurance in Singapore can be availed by hiring financial planners, investment advisors who are registered, and also other financial professionals. Even regulatory bodies like Financial Industry Regulatory Authority (FINRA) avails this insurance.
The benefits reaped from this insurance differs from one insurance agency to another. The scope and benefit plan laid out in the policy also differs from one insurance agency to another. Professional Indemnity Insurance that covers a company includes all its workers. However, it may not cover the temporary workers or the workers in the probation period in the company. It also may not cover the work that is done before the policy came into force. Some policies do not cover certain jurisdictions, as lawsuit in any business is very common and court cases are filed even on small issues. Thus, in the business world Professional Indemnity Insurance is a necessity.