Overview of Professional Indemnity Insurance
Professional indemnity insurance protects professionals and organizations from risks like civil liability. It helps manage expenses from such risks. This policy finds growing relevance as risks grow for organizations. Since the IRS sees insurance premiums as business expenses, deduct the cost of professional liability insurance on tax returns.
Coverage Details
Professional indemnity insurance provides up to £10 million for legal fees or compensation. If a business makes a mistake, this financial assistance helps it survive and thrive beyond the court case. It protects from professional negligence claims, data loss claims, and allegations of poor advice. It provides financial protection if a client alleges work or advice caused financial loss. This includes damages from mistakes, copyright breaches, defamation, and more.
Examples and Importance
In layman’s terms, this insurance comes into play when a customer sues for perceived damages. Charges can range from inaccurate financial advice to a wrong patient prescription. Cases have intricacies. Claims-made policies should stay active, since past clients can make claims. It is liability insurance for advice-giving businesses. If a client alleges failed expectations or financial harm, it pays legal fees and damages.