Professional Indemnity Insurance was historically a policy taken by professionals such as doctors and lawyers. However, with the image and definition of business changing ever so quickly there are various other professions that impart services to others and are at risk of being claimed against. Today the PI Insurance policy earlier confined to a few specific professions is a necessity for most other professions like consultants, architects, marketing managers, BPOs, KPOs, IT professionals and software designers, as well as other service providers such as fitness instructors.
So much so that the recent past has even seen wedding planners opt for this policy to protect themselves for claims lodged by their clients for errors and omissions and/or negligence on their part while rendering services. In the recent past there has been a growing trend of claims being made entities for errors made by their employees during the course of their employment. Thus, the reality of the situation is as scary as one can imagine. However, the various covers extended by underwriters across the globe makes it easier for you to protect yourselves and your businesses against such claims brought against you by your clients.
The Professional indemnity Insurance policy covers you for claims against the business and the professional for any claims by a client for services rendered by you. However, the claim would need to be lodged due to your negligence while rendering services that have been contracted by a client. Usually the scope of work and deliverable s for any contract would be specified and frozen before any contract is initiated. However, during the course of a project delays and other extraneous circumstances may cause the project to go off track to the extent that at times the whole initiative would need to be scrapped. These circumstances at times emerge due to your negligence in rendering services it the professional indemnity Insurance policy that comes to your rescue.
While opting for a Professional Indemnity Insurance Policy it is essential that all material facts relating to the risk are declared to the underwriters. These would include but are not limited to the nature of the business/services being rendered, the annual turnover of the company, the largest contract awarded to your business, the largest customer of your business and the technical expertise existing in your company to impart the services being contracted. The underwriter would not only review the senior management of the company who acquire the business, they would also review the personnel at the delivery level to ensure that structure of the business is robust enough and technically strong enough to guarantee delivery of services that have been contracted.
In order to ensure your business is protected against risks of being claimed against for professional services offered, it is essential that all services offered are done after contracts of requirement stating the exact scope of work have been documented and signed. This would ensure that at a later date the client who is being offered your services does not have the ability to change the scope of work that has been agreed upon. In other words it ensures your interests are protected when the client is not clear with the requirements that are intended from you.
So much so that the recent past has even seen wedding planners opt for this policy to protect themselves for claims lodged by their clients for errors and omissions and/or negligence on their part while rendering services. In the recent past there has been a growing trend of claims being made entities for errors made by their employees during the course of their employment. Thus, the reality of the situation is as scary as one can imagine. However, the various covers extended by underwriters across the globe makes it easier for you to protect yourselves and your businesses against such claims brought against you by your clients.
The Professional indemnity Insurance policy covers you for claims against the business and the professional for any claims by a client for services rendered by you. However, the claim would need to be lodged due to your negligence while rendering services that have been contracted by a client. Usually the scope of work and deliverable s for any contract would be specified and frozen before any contract is initiated. However, during the course of a project delays and other extraneous circumstances may cause the project to go off track to the extent that at times the whole initiative would need to be scrapped. These circumstances at times emerge due to your negligence in rendering services it the professional indemnity Insurance policy that comes to your rescue.
While opting for a Professional Indemnity Insurance Policy it is essential that all material facts relating to the risk are declared to the underwriters. These would include but are not limited to the nature of the business/services being rendered, the annual turnover of the company, the largest contract awarded to your business, the largest customer of your business and the technical expertise existing in your company to impart the services being contracted. The underwriter would not only review the senior management of the company who acquire the business, they would also review the personnel at the delivery level to ensure that structure of the business is robust enough and technically strong enough to guarantee delivery of services that have been contracted.
In order to ensure your business is protected against risks of being claimed against for professional services offered, it is essential that all services offered are done after contracts of requirement stating the exact scope of work have been documented and signed. This would ensure that at a later date the client who is being offered your services does not have the ability to change the scope of work that has been agreed upon. In other words it ensures your interests are protected when the client is not clear with the requirements that are intended from you.
Ammenda Michle
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