What is Professional Indemnity Insurance?
Professional indemnity insurance provides protection or cover against claims brought against the policyholder in situations revolving around professional negligence. Professional indemnity insurance is primarily obtained by business professionals who offer and provide advice to their customers. In a general sense, there are two types of businessmen who purchase professional indemnity insurance: voluntary and involuntary.
Types of Professional Indemnity Insurance:
Negligent Error or Negligent Omission: This type of professional indemnity insurance protects the policyholder against any loss or circumstances incurred solely as a result of their negligent act, error or omission in carrying out the holder’s everyday business.
Negligence Act, Error or Omission: This form of professional indemnity insurance protects the policyholder by providing coverage against any losses or circumstances arising solely as a result of their negligent actions, errors or omissions in carrying out the policyholder’s business.
Civil Liability: The majority of professional indemnity insurance policies will extend beyond simply the coverage examples offered above to provide indemnity for any civil liability. This form of professional indemnity insurance provides coverage against an assortment of actions, including all libel and slander, as extensions to the specific policy wordings.