What are the Risks Covered Under Professional Indemnity Insurance?
Many other businesses choose to take out professional indemnity insurance to protect themselves against legal claims. The insurer will only cover for claims that are brought against the business during the term of the policy.
Professional indemnity insurance policies also referred to as errors and omissions (E&O) insurance help cover you against potentially catastrophic financial events, such as a lawsuit from a client.
Some of the primary risks is covered by Professional Indemnity include but not limited to;
- Fraud and Dishonesty: Liability of the insured business to any third party resulting from fraudulent or dishonest conduct.
- Lost Documents: Costs of replacing or restoring documents lost or damaged in transit, in custody or control of the insured.
- Libel, slander and defamation: Coverage for defamatory statements or materials which can have a negative impact on the reputation of a person in the eyes of others.
- Breach of confidentiality: Covers insured against intentional or unintentional disclosure of information resulting in financial loss to a company or client.
- Infringement of intellectual property: Covers the legal costs or legal defense costs associated with pursuing infringement or theft of intellectual property or copyright.
- Civil fines and penalties: Due to any negligence, the civil fines and penalties imposed on the insured party shall be covered by the insurance company.
- Breach and delay in duty: Damages caused due to delays in the execution of services that the client may face. In addition, it provides coverage against the bad faith of employees in case of any breach of duty.
If you’re starting a new business or have one already up and running, then don’t get caught off-guard when it comes to business risks.
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This article is written by our Principal Officer Winnie M., who has vast insurance and financial knowledge spanning over 10+ years in the industry. You can write to her and/or share feedback with us via this email firstname.lastname@example.org