Professional and Personal - How not to mix the two P’s in your life?
Our lives are traditionally divided into two halves, a personal half and a professional half, with each half dictating how our life shapes up. Our professional attributes have a huge bearing on not just us, but also on others around us, as everything we do is somehow connected to how the world functions in today’s complex scenario. One cannot successfully create a unique professional atmosphere, as we are all interlinked when it comes to our work lives.
What is Professional Indemnity Insurance?
There are times when professionals can make errors while discharging their professional responsibility, errors which could hurt them significantly. Clients could file a lawsuit against such mistakes, resulting in court battles, requiring prolonged time and effort of a defendant.
Professional Indemnity Insurance is a liability cover which protects professionals who offer advice and service from legal expenses and other costs incurred in their defence against any negligence claim against them. Such negligence claims could be on grounds of inadequate services, designs or products that result in a financial loss to a client.
Scope of Professional Indemnity Insurance
Professional Indemnity Insurance covers all legal expenses which an insured professional incurs in his/her defence in a particular case. It also covers any amount which an insured professional is legally liable to pay in the form of damages to third parties on account of errors or quality of service provided by him/her in the discharge of a professional service. These costs are subject to the overall limit enclosed within a particular policy and generally require prior consent of an insurance provider.
Professional Indemnity Insurance does not cover any criminal acts or acts which violate any law in place. It is meant only for Civil Liability Claims.
Who should opt for Professional Indemnity Insurance?
Professional Indemnity Insurance, by definition is available only to professionals and is suitable for those whose service can impact others. Different providers have different eligibility criteria, but the following professionals can opt for this insurance cover.
- Medical Practitioners and doctors
- Architects, engineers or interior designers
- Contractors (plumbers, electricians, etc.)
- Lawyers, counsels and advocates
- Financial consultants, chartered accountants and private consultants
All the aforementioned professions have scope for errors, leading to damages to their clients, which make it a smart option for them to protect themselves with a Professional Indemnity Insurance cover. Other professionals could also opt for this cover and could approach a provider to check their eligibility.
Professional Indemnity Insurance in UAE
With economic growth and development at the forefront in UAE, professionals from across the globe find themselves calling it their home. Banks and insurance providers in the UAE have a host of professional indemnity insurance schemes to protect the interests of these professionals, ensuring that they can discharge their duties without having to worry about unforeseen circumstances.