IRDAI License Number: IRDAI/INT/ISNP/2022/250

Professional Indemnity Policy

Epoch Insurance Brokers Private Ltd.
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Professional Indemnity Policy
Introduction
Who can take this Policy?
Coverage
Add on Covers
Basis of Sum lnsured
Exclusions
Introduction

This policy is meant for professionals to cover liability falling on them as a result of errors and omissions committed by them whilst rendering professional service.

  • Professional indemnity liability protects your company from the financial implications of errors committed by your people in the course of providing professional services. These professional indemnity could be real or alleged
  • Coverage includes legal defense costs - no matter how baseless the allegations
  • Professional indemnity insurance will pay for any resulting judgments against you, including court costs, up to the coverage limits on your policy
  • Coverage may be extended to both employees and subcontractors
  • Worldwide in scope
The policy offers a benefit of Retroactive period on continuous renewal of policy whereby claims reported in subsequent renewal but pertaining to earlier period after first inception of the policy, also become payable.Group policies can also be issued covering members of one profession.

Who can take this Policy?

We issue 'Professional Indemnity' policies to the following group of professionals:

  • Any institutions who is offering any services and advisory
  • Doctors and medical practitioners - which covers registered medical practitioners like physicians, surgeons, cardiologists, pathologists etc.
  • Medical establishments - which covers legal liability falling on the medical establishment such as hospitals and nursing homes, as a result of error or omission committed by any named professional or qualified assistants engaged by the medical establishment.
  • Engineers, architects and interior decorators.
  • Lawyers, advocates, solicitors and counsels.
  • Chartered accountants, financial accountants, management consultants

Coverage

The policy covers all sums which the insured professional becomes legally liable to pay as damages to third party in respect of any error and/or omission on his/her part committed whilst rendering professional service. Legal cost and expenses incurred in defense of the case, with the prior consent of the insurance company, are also payable, subject to the overall limit of indemnity selected.

Only civil liability claims are covered. Any liability arising out of any criminal act or act committed in violation of any law or ordinance is not covered.

Add on Covers

Various add-ons under Professional Indemnity Policy are as follows:

  • Court Attendance Cost
  • Vicarious liability resulting from the actions of the insured's agents/Subcontractors
  • Unintentional breach of Intellectual Property rights
  • Bodily Injury/Property Damage carve back for loss arising out of/attributable to insured's professional services covered
  • Dishonesty of Employees
  • Automatic Acquisition of New Subsidiary
  • Reputational Injury Extension
  • Loss Definition to include Punitive and Exemplary Damage
  • Defamation including Libel & Slander

Basis of Sum lnsured

Limit of Liability should decided on the basis of Turnover of the Business, Contractual requirement if any, Industry Benchmarking etc.

Exclusions

Generally, under a professional liability insurance policy, only the civil liability claims are covered. If the claim arises out of a criminal act or violation of law, then it is not covered under this policy.

Why Choose PolicyLo.com

Professional and Experienced Team
Professional and Experienced Team
Customized Solutions
Customized Solutions
Strong Relationship With Insurance Companies
Strong Relationship With Insurance Companies
Service Commitment Ontime Everytime
Service Commitment Ontime Everytime
Technological Edge
Technological Edge
Additional Services Offered
Additional Services Offered
Competitive Premium
Competitive Premium
Single Window Solution
Single Window Solution

Important Points to remember while Buying the Policy

Adequate Sum Insured - To Avoid Underinsurance

Retroactive Date should be in continuation and limit of indemnity need to be clearly mentioned

  • Retroactive Date should be in continuation as in claims-made policies, it determines how far back in time an incident can occur for your policy to still protect you.
  • Limit of Indemnity is the maximum liability of Insurance contract and it should be clearly mentioned.
Ensure that assets should be covered under the right entity/company

AOA:AOY should always be 1:1

  • AOA:AOY should always be 1:1 so that for any particular incident the limit is the highest possible as per the policy.
Risk Location/s should be properly mentioned

Importance of Continuation of Policy without any break

  • Liability Insurance has a long tail impact any wrong doing in the past many years may come to notice after many years that it why it is paramount that policy should be continued without any break to get the benefit from retroactive date.
Downloads
Proposal Form
Proposal Form  
Policy Wordings
Policy Wordings  
Claim Form
Claim Form  
Key Documents
General Claim Intimation Format
General Claim
Intimation Format
Immediate Action Client Should Take
Immediate Action Client
Should Take
Indicative General Documents
                            for Settlement of Claims
Indicative General Documents
for Settlement of Claims

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Claim Case Study - 1

1
Situation
Situation

A heart patient was hospitalized in a reputed hospital of NCR, Patient was paralyzed after the Heart Surgery.

2
Challenge
Challenge

Family of the Patient filled case against the treating doctor that it was negligence of the doctor, since post operation methodology was not followed which eventually caused paralysis.

3
Solution
Solution

After analyzing the Pre Existing details of the patient it was successfully argued before the consumer forum that the cause of paralysis was not due to an amission of the doctor but was traceable to a pre exiting ailment. Since the defense cost was not covered in the policy, it was not paid.

4
Advisory/Conclusion
Advisory/Conclusion

Defense Cost should be included in the policy.

Claim Case Study - 2

1
Situation
Situation

A 70 year old person was undergoing a Total Knee replacement in a reputed hospital and was also having cardiac history.

2
Challenge
Challenge

While performing the surgery, doctor did not go through his previous treatment papers. And the patient had some cardiac issues while performing the knee replacement which required immediate attention. Due to which the surgery of one knee was not successful.

3
Solution
Solution

The patient filed a case against the doctor for hid negligence, which was paid from the Insurance Policy.

4
Advisory/Conclusion
Advisory/Conclusion

Liability policy is always suggested for such profession.

Need Assistance

Need Assistance

FAQ's

PREMIUM
COVERAGES
CLAIMS
OTHERS
  • What is covered in Professional Indemnity Policy?
    This policy broadly covers:
    • Bodily injury and / or death of any patient caused by or alleged to have been caused by error, omission or negligence in professional service rendered or which should have been rendered by the insured doctor
    • Legal costs and expenses
  • How to Select Limit of Indemnity in Professional Indemnity Policy?

    In Professional Indemnity Policy, the sum insured is referred to as Limit of Indemnity. This limit is fixed per accident and per policy period which is called Any One Accident (AOA) limit and Any One Year (AOY) limit respectively. The ratio of AOA limit to AOY limit can be chosen from the following:

    • 1:1
    • 1:2
    • 1:3
    • 1:4

    The AOA limit, which is the maximum amount payable for each accident, should be fixed taking into account the nature of activity of the insured and the maximum number of people who could be affected and maximum property damage that could occur, in the worst possible accident.

  • Can loss of financial nature such as loss of goodwill be covered under Professional Indemnity Insurance?
    No.
  • Who can purchase Professional Indemnity Policy?
    Professionals like architects, engineers, doctors, lawyers, chartered accountants, and medical practitioners, and services such as medical establishments can protect their business interests against legal claims for error, omissions, professional neglect for both the principles and their employees.
  • What is retroactive date in the policy?
    Retroactive date is the date after which acts, errors or omissions of the Insured are covered. That is, any act, error or omission arising from work done after the retroactive date will be covered under the policy. The date of inception is the date of the start of the policy period.
  • What is professional indemnity Insurance?
    Professionals like architects, engineers, doctors, lawyers, chartered accountants, and medical practitioners, and services such as medical establishments need to protect their business interests against legal claims for error, omissions, professional neglect for both the principles and their employees. The Professional Indemnity Insurance Policy comprehensively covers them for all legally established claims arising from the covered perils.
  • Do I need professional indemnity insurance?
    If your business gives advice, offers a professional service, or handles data or intellectual property belonging to a client or business, you may need professional indemnity insurance. This cover protects you against the cost of a claim for negligence or a mistake that leaves the client out of pocket.Even if you’ve done nothing wrong, the cost of defending yourself against these claims can be very high. Professional indemnity cover can help protect you and your business against this risk.
  • How to decide the Limit of Indemnity under Professional indemnity Policy?
    The limit of Liability has to be decided by the client, Following are the factors that can be taken into consideration while deciding the limit: 
    • The Size of Balance Sheet
    • The Turnover of the business
    • Industry Benchmarking
  • What are the differences between PI & E&O Policy?
    E&O Policy is offered for a tech based company whereas PI Policy is offered elsewhere.
  • Can Tech Based IT Company be offered PI Policy?
    E&O Policy is offered to Tech Based companies looking for cover against their professional negligence.

INSUROLOGY

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