This type of insurance is conceived to meet the needs of those liberal professions which provide special advice, designs or services to clients, susceptible to receive claims regarding their activity. Such professions may comprehend lawyers, notaries, consultants, IT professionals, medical practitioners, electrical and mechanical engineers, architects and civil engineers, accountants, auditors… to name but a few.
In a society where everybody is more demanding and critical than ever, professionals have a great responsibility when providing their services, for there is a lot at stake. Even the best experts receive bad reviews and not everyone will be happy with their services. It does not mean we as professionals do not struggle to give our best: it is only that everybody makes mistakes. And we all know that any mistake may destruct our reputation. It is for this reason that Professional Indemnity insurances are remarkably useful if we are in one of those professional groups, to have the greatest of the protections for us and for our clients.
In fact, many trades and professional associations require insurance coverage in a mandatory way. However, even if we are not obliged by law to have this type of coverage, it could save us a remarkable amount of money in case of a claim, if we have to reward compensations or fees. Thus, our company would be protected from any consequence of errors or omissions committed by us during our professional performance.
What do we have to search in our insurance then? These are the most common problems we may find in our activities:
- Loss or damage as a result of any negligent act;
- Error or omissions whilst carrying out our professional performance;
- Libel and slander;
- Loss or damage to documents;
- Dishonesty of our employees;
- Prior acts (covering claims even before of the inception date of the policy);
- Extended reporting period for expired claims;
- Unintentional breach of confidentiality;
In sum, everybody is exposed to making mistakes. Carelessness, and therefore, negligence lies precisely on not being able to solve our errors. For this reason, Professional Indemnity insurances may be vital depending on our profession.