Professional indemnity insurance (PII) is a kind of insurance that covers companies and professionals against any claims made by clients that may lead to financial losses. If there is any legal case against any individual, like a doctor providing medical services or any company providing such services, this insurance covers all the cost incurred by the lawsuit. Professional Indemnity Insurance is very common in areas that are commercially busy with many industries.
Professional Indemnity Insurance is also availed by financial advisors like insurance agents and financial planners. Even regulatory bodies like the Financial Industry Regulatory Authority (FINRA) need professional indemnity insurance. Different insurance agencies give different coverage plans and hence the benefit reaped from these insurances differs from one agency to another.
Professional Indemnity Insurance, when it is availed by a company, is usually inclusive of all its workers. But the employees that do not work full time for the company or are on probation are usually not covered by this insurance. Also, any past work is not covered by this insurance. Thus, for any firm providing any professional service, professional indemnity insurance is a necessity.
PII for medical practitioners:
A doctor is a very revered person in society since time immemorial. However, in the recent past, due to some negligence on the part of the doctors, their respect has gone down considerably. The number of legal cases against doctors has been going up at alarming rate. Thus doctors are professionals who face legal and financial risks in the course of carrying out their professional duty. At times, the amount for which they are sued can be exorbitantly high. Also, as doctors are not aligned to any company, they often have to bear the cost completely on their own. Thus doctors need insurance that can cover them legally and financially, in such cases where they are sued for negligence or malpractice. Even nurses need such insurance coverage. Hence professional indemnity insurance is one of the most availed insurances by doctors.
PII for doctors usually consider the extent of the financial loss that is caused to the victim and which has not happened due to intentional negligence. Any unintentional error caused is also covered by this insurance. The cost incurred while fighting the legal case is also covered by the insurance. However, the insurance does not cover any criminal acts.