Types of Professional Indemnity Insurance in South Africa
It’s important that companies and their employees invest in professional indemnity insurance. In this way, a company can ensure that should an expensive error occur and a disgruntled client wish to sue, the business is covered.
What is Professional Indemnity Insurance?
Professional Indemnity insurance covers you and your business if they face legal action due to allegations of negligence, oversights, or mistakes. A good professional indemnity policy covers legal fees that you may incur in the process of defending the case and any awards or settlements you may enter into. Professional indemnity insurance exists in the following variations:
Professional Employers Indemnity Insurance
Essentially, this type of policy covers employers against claims made by their employees. In the event that an individual incurs an injury or loss as a result of the business, this policy covers the business who is then liable to pay for said damages. The policy also covers emotional damages, but does not extend to cover employers should an employee sue for unlawful dismissal.
Professional Malpractice Insurance
This insurance policy is specifically aimed at doctors and lawyers. It offers cover against costly mistakes incurred in their professions. Medical malpractice insurance covers doctors in the event that they are sued by their patients for incidents like misdiagnosis and accidental injury. Law malpractice insurance acts in a similar fashion, covering lawyers for poor advice and errors.
Insurance companies determine the premiums for this kind of insurance based on the amount of cover required by a specific profession, risk profiles, and the location of the practice.
Errors and Omissions Professional Indemnity Insurance
This indemnity insurance protects those in the financial field, should an error or omission result in a client’s fiscal ruin. The legal costs involved an be covered by the policy.
General Professional Indemnity Insurance
If you don’t fall under one of the categories listed above, this could be a policy to consider. It covers a business from any claims of personal injury or damage put forward by the public. Some companies may need more comprehensive types of business insurance that include liailiy insurance, indemnity cover, and other types of cover. To find the best policy for your company, it’s best to compare your options.
Resources: Business Insurance;