How Do You Select the Best Indemnity Insurance for Professionals in Gauteng?
The Professional Indemnity Insurance Requirements List market is currently in its soft phase, with insurers still placing emphasis on volume at the expense of profit in Gauteng. And what of the future? It is certain that at some stage the market will enter harder conditions. There is uncertainty as to when the market might harden and by how much. Invariably the deeper and more prolonged the soft market the more pronounced the adjustment will be when it comes.
Events in insurance, as in life, are powerful and unpredictable. What future events might conspire, individually or collectively, to prompt a return to harder market conditions? The following is a list in Gauteng, by no means exhaustive, of the likely culprits :-
Griffiths & Armour Professional Risks acts as manager for the professional indemnity division of Griffiths & Armour.
All rights reserved. This document does not present a complete or comprehensive statement of fact or the law, nor does it constitute legal advice. It is intended only to highlight issues that might be of interest to Griffiths & Armour clients; specialist legal advice may be required where appropriate. Where links to third party indemnity insurance websites are provided, we accept no responsibility for their content.
Interesting Facts About About indemnity insurance for Professionals in Gauteng:
Professional Indemnity Insurance is designed to protect your business against any claims arising from negligence advice or services. It covers for people working for a business that involves risk.
Professional Indemnity Insurance policies are purchased by business owners to protect their companies from financial liability in case of claims of negligence. The individual under this is at the same time provided with assistance by Professional Indemnity Insurance when fighting lawsuits. Professionals like accountants, engineers and architects can choose several types of this insurance plan and make their business well protected.
However a professional can be granted or denied by an insurer upon applying for a Professional Indemnity Insurance for several reasons. These factors may include business locations, claims history, industry and coverage amount. The degree of risk reflected by the premium amount is determined by these factors. The insurance company will raise the premiums if a professional is granted a policy but poses a higher risk than standard applicants.
PI Insurance Explained
Business insurance is to protect the business against any risks associated with their business practices. This may include risks of personal injury to customers or employees, fire, flood, theft, natural disasters, malfunctioning computers, construction accidents, financial losses and other damages if the business was not acting negligently. There are many different types of business insurance and each business can customize their coverage. The cost will depend on what kind and how much coverage is required. Consultancies in the UK, that offer advice to clients, especially need Professional Indemnity Insurance to cover the risk that the advice may cause a client financial or other type of loss.
Professional Indemnity Insurance will cover any claim made against your company. Without this insurance, the claim could be large enough to ruin your company. Management consultants, IT consultants and design consultants are examples of consultancies that would need protection.
There are other types of insurance a business in the UK should have. Construction companies may want tool insurance and heavy equipment insurance. Also, Public Liability Insurance may be a legal requirement to protect your business or employees against any claims made if a person is injured or property damaged in the course of your normal business practices.
Insurance companies will help any business choose the best combination of coverage for the type of operations involved.
Professional Indemnity Insurance Requirements List in Gauteng
Counselors, psychologists and therapists who maintain private practices, even on a part time basis, must consider the litigious aspect of their practice and closely review their insurance policies to protect their practices. A key element of proper coverage is called Professional Liability Insurance. Psychologist, therapists and counselor Professional Liability Insurance typically contain comprehensive coverages for their practices as an employed or self-employed professional.
Let's begin with some basic definitions. Professional liability insurance is one aspect of general insurance, or risk financing, used to protect the purchaser from liability risks such as lawsuits and other similar types of claims. Professional liability insurance is often referred to as PLI, this is common in insurance industry jargon, though today it has become a well know laymen's term for many businesses and organizations. This type of insurance coverage can protect psychologist, therapists and counselors (and their respective practices) from suits and claims relating to errors in the performance of their professional duties.
Professional liability insurance can also be referred to as professional indemnity insurance or as errors and omissions insurance which is also referred to as E&O. It is a type of liability insurance that helps insure professional service providers, those people who provide "counseling, guidance and advice", such as therapists, psychologists and counselors, though there are many other types of service providers within this field. This class of insurance was designed to protect these service providers in the event of lawsuits, or in other words, to mitigate the onerous costs of these types of suits including negligence claims made by a client, and damages awarded in civil lawsuits. Professional liability insurance is required by law for certain types of professional service practices, and may also be required contractually predicated upon the individuals or businesses served by the psychologists, therapists and counselors.
This insurance is typically issued by carriers, but often sold by brokers or agencies. It insurance is designed to offer protection against third party insurance claims, to someone suffering loss who is not a party to the insurance contract. Damage caused intentionally may not be covered under these types of insurance policies. When a claim is made against a counselor, psychologist or therapist, the insurance carrier has a duty to defend the insured. It is important to note here, that the legal costs of a defense often do not affect policy limits, unless the policy expressly states this fact. This type of clause is important to counselors, psychologists or therapists as defense costs can increase precipitously when cases progress to trial. A simple error or omission can put an entire practice at risk, and these types of insurance policies should be specifically tailored to protect counselors, psychologists and therapists, from bearing the full cost of unexpected legal fees.
Do You Need Professional Indemnity Insurance?
When professionals are hired, they are done so with the belief that they have the necessary expertise and knowledge to carry out the task to the best of their abilities. Added to that, there is a certain code of conduct they are expected to abide by while doing their jobs. When professionals fail to meet the standards desired of them and their skill levels fall much below expectations, they are liable to be taken to court for the loss they inflict upon the business of another person. Thus, they need professional liability insurance. Professional liability insurance is termed "errors and omissions" liability, when liability is confined to acts of negligence.
There are different types of personal liability insurance coverage. Personal injury covers the client against claims of slander, libel and invasion of privacy. Intellectual property infringement coverage covers the client against claims of copyright infringement. Software processes and systems are commonly termed "intellectual properties." Also, worldwide coverage is provided if the suit is bought in America.