Professional indemnity insurance coverage (or PII) is a policy that is readily available to suppliers of expert services. Professions that enter your mind include designers, accounting professionals and lawyers as well as those in the IT and other markets.
It might be that you are required by a professional body to get a degree of cover. And you may find in daily business that some prominent organizations will not handle you unless they have seen proof that you have adequate PII cover. If you are attempting to win business from public sector bodies, this is especially real.
Exactly what does professional indemnity cover include?
These policies frequently offer compensation for insurance claims made by your customers for the loss they have suffered due to negligence that has taken place in your work. So, for instance, if you have done a mistake in the design of a building and it collapses, the client could sue you for the loss he has suffered as a result. Claims can be produced neglect due to your acts (like the incorrect design); omissions (like an accounting professional submitting a tax return late); libel and slander.
Exactly what don’t the policies cover?
Professional indemnity insurance coverage handles a particular set of situations in a neglect scenario. It does not cover claims from consumers for accidents sustained on your facilities, or the job-related health problems of your employees, for example. If you do not already have cover for these dangers, you may want to speak with your insurance coverage company about further policies.
How are the premiums worked out?
Premiums are typically based upon the value of the deals and tasks that you work on. Going back to the designer’s example, if you develop shopping centers for a living, you may need more cover than someone who creates specific property homes, as the amounts involved are larger. As with other insurance coverages, companies evaluate the dangers of supplying your cover when choosing how much you should be charged. A company with an unblemished record might pay less for their cover than a company who routinely claim on their insurance coverage.
What else should you search for?
Search for the level of the excess on the professional indemnity insurance plan. The excess is a portion of the claim that will not be fulfilled by the insurance provider which you, the insured, need to pay before receiving a settlement from the insurance company. Consider your claims history and the value of the tasks you work on to choose what would be an ideal excess for you. Also, examine the conditions and terms completely.
For further reading about this topic, visit http://businessinsurancequotes.co.za/professional-indemnity-insurance-south-africa/