Professionals like doctors, chartered accountants, and engineers have been perennially held in high esteem in India. However, that does not discount such individuals from being charged for negligence or breach of professional duties. In fact, a study shows that there have been more than 2600 cases of litigations filed against doctors for medical negligence in 2019.
While the significant portion of those ended in favour of accused medical professionals owing to lack of substance in claims, they still led to untoward consequences for such individuals. Hence, in this day and age, where professionals are at an increased risk of lawsuits, professional indemnity insurance policy plays a crucial role.
How can an indemnity insurance policy benefit professionals?
- Coverage against wrongful accusations
In case you are in a field where you provide advice to clients and third parties in a professional capacity, you’re vulnerable to lawsuits being brought against you. Despite the outcome, those can still lead to exorbitant legal expenses. It’s all the more overbearing if you have just started practising solo. With a professional indemnity insurance policy for doctors, chartered accountants, or any other profession in place, you can tide over such expenses more conveniently.
An indemnity insurance policy is also a mark of professionalism. In several fields, like that of a CA’s, clients often require the business to have such a plan in place before they initiate any formal relationship. It assures clients that a business is conducted professionally, and provides them with a sense of security.
- Protects reputation
To that end, a professional indemnity insurance planallows you to seek legal ends to disavow damaging claims and clear your name of any wrongful allegation. It’s one of the primary reasons why doctors should care about a professional indemnity insurance policy since their reputation is a significant reason why scores of individuals avail their services.
- Employee negligence
In several cases of genuine professional litigation, it’s the employees who have been found guilty of negligence or misconduct that led to such liabilities. However, the brunt of it is often faced by employers. Since aside from extensive training programmes, there’s not much you can do to control your employees’ actions; it’s ideal to hold a PI insurance policy to mitigate liabilities of that sort.
- Data leaks
Despite robust security mechanisms, there have been alarming incidences of data breaches in India. In August 2019, hackers stole data of nearly 68 lakh individuals from a healthcare website. In case you are in a profession where there’s a need to store data on third party basis, it is essential to hold an indemnity insurance policy. Data breaches can lead to substantial legal costs, and having sufficient financial coverage can position you well in such a crisis.
- Coverage against mistakes
No matter how expertly trained, adept or careful you are in your practice, mistakes can occur. It especially holds for medical professionals where there’s a risk of misdiagnosis, wrong treatment, incorrect medicinal dosage, etc. A professional indemnity insuranceplan protects you against liabilities arising out of such cases of negligence.
- Provides peace of mind
Aside from all the practical benefits, a PI insurance policy provides peace of mind and lets you carry out your duties without worries, especially since premiums are nominal for such policies.
However, an insurance policy comes with a fixed coverage amount, which might not suffice in all cases. In that case, you may consider a professional loan. It allows you to address additional expenses with ease and mitigate that excess financial burden that you may have to carry otherwise.
For hassle-free and faster fund disbursal, certain financial institutions like Bajaj Finserv also provide pre-approved offers on credits. Such offers are available on professional loans, personal loans, credit cards, etc. You can provide your name and phone number to check your pre-approved offer.
Nevertheless, when it comes to a professional indemnity insurance policy, you must check what such plan covers to optimise your benefits. Therefore, go through the terms and conditions in detail before subscribing to any.