Professionals are subjected to a degree of risk from practice-related liabilities that can give rise to unforeseen expenses at any given moment. A lawsuit, for example, can not only ruin one’s professional credibility but also result in incurring substantial expenses that can be a cause for an unnecessary burden on one’s finances.
A professional indemnity insurance policy, in this regard, can aid professionals like doctors, CAs or engineers cover the legal expenses arising due to alleged negligence or other occupational hazards arising in due course.
With this insurance policy in place, working professionals can minimise the expenses incurred due to professional liabilities and safeguard their interests effectively.
Nonetheless, before availing such an insurance policy, individuals must review the features and benefits offered under it to maximise their benefits from it.
Given below are a few tips, which individuals can follow to avail the maximum advantages when reviewing an existing professional indemnity insurance plan or when availing a new one.
Tips to review an indemnity insurance policy for professionals
To review their policies and gauge its effectiveness, individuals must look for the following features and benefits.
- Consider the scope of coverage
To ensure that you are availing the maximum benefits under this insurance policy; you must ensure that it proffers extensive coverage. For instance, professionals like doctors must ensure that their insurance policy covers the following aspects to help mitigate the liabilities that frequently arise in their line of work.
- Third-party damages
- Breach of confidentiality
- Loss of documents
- Libel and slander
- Defence costs, etc.
With such comprehensive coverage, doctors possessing this indemnity insurance policy can effectively minimise the financial liabilities occurring in due course of treating any patient. One should thus review these factors to choose the best professional indemnity insurance for doctors.
Similar factors must be considered when availing the insurance plan for any other professional.
- Check the coverage amount suitability
Merely seeking a policy offering extensive coverage might not be enough unless the coverage amount is sizeable too. For instance, with few insurance providers, individuals can avail coverage amounts ranging between Rs.50 lakh and Rs.1 crore that can effectively help them to bear litigation costs and such incurred in due course of profession-related liabilities.
It is one of the most crucial points that one must look through while reviewing their indemnity insurance policy to enjoy maximum benefits.
- Look for fast claim settlements
With a few insurance providers, you can enjoy fast claim settlement, wherein the entire process can be completed within 30 days from the submission of relevant documents. A fast claim settlement ensures that your grievances are addressed at the earliest and with minimum hassle.
- Compare affordability of the policy
The cost of such insurance policies is one of the most important factors to review before investing in a plan. There are a few parameters that are taken into account to determine the cost of such an insurance policy.
For instance, the sum assured under the policy, professional record, list of indemnities, profession of the applicant, etc. are a few factors based on which the premium for a professional indemnity insurance plan is fixed.
For example, the premium paid towards an indemnity insurance plan for doctors varies from that for a chartered accountant.
By reviewing these factors pertaining to an indemnity insurance policy, individuals can ensure that they are effectively protected from any of the service-related financing risks that might arise during their career.
By availing a comprehensive indemnity insurance policy, individuals can ensure that the stability of their finances remains undisturbed.
In this regard, professionals can also choose to avail a professional loan, like a personal or business loan to meet unforeseen expenses and maintain their financial health. These professional loans are easily available and can be utilised to meet any number of funding requirements.
Furthermore, financial institutions like Bajaj Finserv bring pre-approved offers that can make availing these loans faster and easier. These offers can be availed for a handful of financial products, including personal loans, business loans, etc. You can check your pre-approved offer easily by providing your name and phone number.
Thus, with such products at their disposal, professionals can ensure that they are protected against sudden financial losses that can hinder their practice. Reviewing a professional indemnity insurance policy before availing it can only strengthen this protection, allowing policyholders to optimise their benefits from it.