Scope of Professional Indemnity Insurance
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.