Professional Indemnity Insurance in South Africa – Are They the Answers to Your Liability Cover?
One of the areas of greatest confusion is the difference between Professional Indemnity, General Liability and Product Liability Insurance. Professional Indemnity Insurance provides coverage for professionals (corporate or individual) for any negligent act, error or omission alleged to have occurred while in the performance of their professional activities and duties. It differs from General Liability and Product Liability Coverage in that the acts covered are those acts performed by an engineer, architect, doctor or attorney in rendering professional services to their clients. To better understand this coverage we will have a brief discussion below of Product Liability, Professional Indemnity and the application of the latter and how it functions.
A. Product Liability
Product Liability is the legal responsibility of a manufacturer to a consumer of its’ product. Liability arises out of the negligent manufacture of a product including defective or faulty workmanship, materials or components. It is a liability that arises from the failure of a manufacturer to properly manufacture, test or warn about its product and occurs when the product departs in a negligent manner from its intended function.
Do You Need Professional Indemnity Insurance?
Professional indemnity insurance (also referred to as PII, PI, professional insurance, public liability insurance, PLI and errors and omissions insurance) is crucial cover for any party who supplies advice, guidance or professional services. If you work in any professional industry, from creative companies to firms who handle data, insurance is essential, yet it can be tricky to know whether or not this form of cover is necessary to you.
In this article,
we'll be exploring which industries require professional indemnity insurance and why this type of cover is so important to companies across the UK and worldwide.
Who needs professional indemnity insurance?
If you think you need PI, chances are you're right! Essentially, if you work in a line of business where mistakes or misjudgements in your work could affect a client or third party, professional indemnity insurance is a vital form of cover which could protect you from the little errors that life can sometimes throw your way. If you're still not sure, it may be helpful to ask yourself the following questions:
• I.T. companies (from programmers to technical support teams)
• Financial companies (from accountants to bankers)
• Creative businesses (from advertising to marketing to photography companies)
• Architects, travel agents, engineer, estate agents...
This list is not exhaustive by any means. If you're at all unsure please consult our quick 'do I need insurance' checklist above or speak with an insurance expert. If you do need insurance, it is important to make sure you address this need. Without the right protection in place you risk your livelihood and your business. So get cover now!
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.
Professional Liability Insurance
The field of insurance is always a tough one to comprehend with. In case you are aware of this field then you must have heard a lot about professional indemnity insurance. It is a simple insurance policy which indemnifies the policy holder from monetary loss due to several claims from the other involved party. There are different kinds of professional indemnity insurance policies that can be chosen by a business house in dissimilar industries. Here, we are going to render you complete information regarding professional indemnity insurance.
Let us now talk about some of the most essential things in regard to this topic. You should pay proper attention towards the below mentioned points.
A professional indemnity policy offers a number of advantages to the policy holder. In case a simple claim is acquired against the policy holders, the insurance firm is going to conduct a proper investigation on their behalf. Here, the insurer of the policy needs to reimburse for the legal fees that accumulates.
Professionals and experts that are functioning in medical industries might be needed to carry a suitable indemnity insurance policy. The policy holder is responsible for the additional amount in case the policy insurance amount doesn't really cover the sum to be reimbursed out in a legal claim.
So, all in all we can easily conclude that a professional indemnity insurance policy can offer you a wide range of benefits. You should however research hard regarding it before investing your money. With a little bit of knowledge and skills you can surely make the most out of this coverage policy. For any other assistance, you can surf the net and seek out some professional help. I hope this article could provide you some crucial information in regard to this policy.