An indemnity insurance for professionals is designed to protect them from the legal and financial consequences of omissions, mistakes, or errors that may occur while providing their services. Basically, it is a plan that covers professionals' legal defence costs, compensation amount and more arising from professional negligence or claims made by clients.

For instance, if a doctor is accused of misdiagnosis or a consultant faces a claim due to incorrect advice, PI insurance manages the legal and financial burdens. This allows professionals to focus on their work without worrying about the potential consequences.

Key Professional Indemnity Insurance Coverage

The professional indemnity insurance offers coverage against several types of professional risks, such as:

Legal Defence Cost: The professional indemnity insurance coverage includes legal or defence costs, including lawyer expenses, court fees, and more.

Breach of Contract: The PI insurance protects insured professionals if they fail to deliver the services specified in their contract.

Loss or Damage to Documents: The plan also provides coverage for the insured policyholder if important client data or documents are lost while in your custody.

Unintentional Confidentiality Leaks: If the insured policyholder accidentally leaks the client's confidential information, then the plan offers protection against such claims.

Professional Indemnity Insurance Exclusions

There are some exclusions which are not covered under the plan, such as:

• Any professional indemnity claim associated with bodily injury or property damage is not covered under the plan.

• Any kind of claims related to employment discrimination or harassment are not covered under the plan.

• Claims arising from fraudulent, dishonest, or intentional acts by the insured are not covered under the policy.

• Claims arising from acts committed before the retroactive date mentioned in the policy are not covered.

• Any kind of claims related to services provided outside the scope of the profession mentioned in the policy are not covered.

When buying professional indemnity insurance, professionals often get confused about what to look for. To help them out, here is a step-by-step guide to buying professional indemnity insurance.

Step 1: Assess Your Profession Needs

To get professional indemnity insurance, you first need to understand your profession's needs and risks. This will help you determine the appropriate indemnity limit, request a coverage extension, and more based on your profession.

Step 2: Research and Pick Reliable Providers

After knowing about the profession, the next thing you need to do is research the insurance provider. By knowing the claim settlement ratio, client feedback and more, you can choose the reliable provider.

Step 3: Compare Different PI Plans

After shortlisting a few insurers, compare their PI plans in detail. Check the coverage offered, inclusions, exclusions, add-ons, and limits. This comparison helps you understand what each plan covers and ensures you do not end up with gaps in protection.

Step 4: Review Policy Coverage

Before making the final decision, carefully review the policy coverage. Make sure it aligns with your professional needs and covers the specific risks associated with your work. Pay attention to clauses related to retroactive date, claim reporting period, and policy limits to avoid surprises later.

Step 5: Provide Details & Documents

Once you are sure of the professional indemnity insurance policy, you need to fill in the details to buy the plan. Submit the crucial documents to the insurance providers, such as identity and address proofs.

Step 6: Make Payment

After filling out the details, carefully review them. Once you are sure everything is in order, make a payment using your preferred payment method, such as UPI, credit card, or debit card.

Step 7: Receive PI Policy

After the payment is successful, you will get the policy document instantly. You can usually download it instantly or receive it on your registered email, giving you immediate proof of coverage.

To buy the professional indemnity insurance online, you need to submit the following list of documents.

• Proof of identity, such as an Aadhar card, PAN card, etc.

• Proof of address, such as a rental agreement, utility bills, etc.

• Proof of qualification certificate, such as a diploma, degree, etc.

• Proof of professional registration, such as the Medical Council, Bar Council certificate, etc.

• Business proof such as GST certificate, business registration certificate, etc.

• Proof of finances, such as annual income or a revenue report.

• Any additional documents required by the representative.

While buying a Professional Indemnity Insurance policy, many professionals unknowingly make mistakes that can weaken their coverage when they need it the most. These oversights may lead to rejected claims or inadequate protection during a crisis.

To help you make a well-informed decision, here are some common mistakes you should avoid while buying a plan.

Prioritising Price Over Coverage

One of the common mistakes most professionals make is relying more on the professional indemnity insurance cost than on coverage. A low-cost policy offers insufficient coverage, leaving you open to significant financial risk. It is advisable to choose the plan with comprehensive protection.

Not Disclosing Information

Another mistake most professionals make when purchasing professional indemnity insurance is failing to disclose relevant information to the insurer. Hiding or misinterpreting information at the time of buying a plan can lead to claim rejection. Always be honest and transparent while buying plans.

Overlooking Policy Details

Overlooking policy details, such as professional indemnity insurance benefits, inclusions, exclusions, etc., can be disastrous during the claim process. It will bring financial surprises which you might not be ready for. It is important to read the policy document carefully when buying the plan.

Skipping Add-ons or Extensions

Many professionals skip add-ons or extensions to reduce the premium, without realising their importance. These optional covers can provide extra protection against risks specific to your profession. Skipping them may leave coverage gaps, which can be costly during a claim.

Professional indemnity insurance provides a crucial safety net for professionals and businesses against various professional risks. With this plan in place, professionals can focus on their work without worrying about claims arising from professional mistakes.

Not just this, a professional indemnity insurance also builds trust among their clients by showing they take responsibility for their professional work. However, when buying a plan, professionals need to carefully assess their business risks and other factors to choose an appropriate plan.

TATA AIG offers a customisable professional indemnity insurance for professionals across various fields. Whether you work in healthcare or finance, our plan is carefully curated to meet your professional needs.

Our professional indemnity insurance plan includes a court attendance benefit, which provides an allowance if you need to attend court as a witness. With an easy buying and renewal process, you can buy professional indemnity insurance without any hassle. Buy professional indemnity insurance coverage now with TATA AIG at a very affordable price.