Practicing your chosen profession or setting up your own business has a lot of advantages. However, there are also some risks that require your full attention. Such risks include indemnity issues. Even if you follow all necessary precautions to prevent indemnity problems, there is still a small but possible chance that clients will take legal action against you. Even the most reputable of companies may find themselves facing a lawsuit against an unsatisfied client. Without proper insurance coverage for indemnity, such cases may cause financial instability or bankruptcy.
What is professional indemnity insurance? Professional indemnity coverage is a kind of insurance taken by professionals or companies who give certain advice or services to clients. This insurance provides efficient protection to policy holders whose advice or service lead to a client’s loss. With it, professionals are protected against significant financial losses caused by litigation. The law mandates professionals such as nurses, surgeons, accountants and physiotherapists to be covered by indemnity insurance so that they may be able to pay their clients for the damages that their services have caused.
Professional Indemnity Insurance for Physiotherapists
There are many possible causes for a professional to face litigation. Insurance such as professional indemnity insurance for physiotherapists can protect them from these unfortunate occurrences. It protects them from certain cases such as negligence, intellectual property infringement, loss of documents or data and dishonesty. In addition, a policy holder is also protected against claims such as damage to property, breach of trade practices, criminal acts, bodily injury and deceptive or misleading conduct.
Professional indemnity insurance for physiotherapists can protect not only the physiotherapist himself but also the client as well. It ensures the clients that the policy holder has the means to pay for damages in other costs in case a service error occurred. This is why indemnity coverage eliminates the risk for both the physiotherapist and the client.
Professional Indemnity Insurance for Accountants
Because professional accountants have an important role in their client’s financial affairs, they are mandated not only by law but by different organizations for accountants as well to get professional indemnity insurance for accountants. Organizations such as ACCA, ICAS and ICAEW make sure that their members hold appropriate insurance plans .
Other jobs which involve numbers such as bookkeeping, tax consultancy, financial reporting and auditing should also get indemnity insurance to protect the professionals from cases such as but not limited to Negligence or Error in Service, Implied Statutory Terms, Unpremeditated Infringement of Intellectual Property Rights, Loss of Documents or Data, Libel, Slander or Defamation, Breach of Confidence and Misuse of Information.