Essentially, an indemnity insurance policy is a liability insurance plan that aids professionals to cover any financial obligation resulting from an occupational hazard or supposed negligence. The said insurance policy is also known as a professional liability insurance plan. Such insurance plans are more common in the case of medical professionals as the risks of a financial liability arising out of omissions, errors and claims are seemingly high.
Professionals insured with such a policy can thus get their legal financial obligations arising out of such claims covered under it. Besides, other crucial features and benefits which accompany this insurance policy make it a must for professionals running a business practice like a clinic for a doctor or a consultancy firm for a chartered accountant.
Reasons to avail an indemnity insurance policy
Any professionals, be it doctors, engineers, chartered accountants, architects, contractors and counsellors, among others, tend to benefit from an indemnity insurance policy.
The most prominent features and their associated benefits include –
- Extensive coverage against legal liability
Indemnity insurance policies extend inclusive financial coverage for several professional risks. Some common risks covered by the said policy include –
- Cost of legal claims
- Libel and slander
- Third-party damages
- Breach of confidentiality
- Claims resulting from negligence in professional services
Professionals like doctors must identify the risks they have if they do not invest in a professional indemnity insurance plan. Doing so, they will let them make suitable arrangements. While at it, they should also check the exclusions of the insurance policy to take an informed decision.
- High coverage value
The said insurance policy extends a high coverage value. It directly helps professionals to take care of their legal liabilities and third-party financial obligations easily. However, it must be noted that the coverage value depends on three fundamental factors, namely, the size of their practice, the financial standing of the professional and probable risks involved in the said practice.
- Affordable premiums
Typically, leading financial institutions provide indemnity insurance policies at an affordable premium. This helps professionals to avail reliable coverage to look forward to in the time of need irrespective of their financial standing.
However, it must be noted that the premium of professional indemnity cover depends on several factors. For instance, financial institutions weigh in factors like – sum insured, revenue and profession of the applicant, list of selected indemnity risks, and their professional record to decide on a suitable premium. For instance, the premium for indemnity insurance for doctors can be different from that of a chartered account.
- Hassle-free claim process
Most leading financial institutions also lay down a simple process to raise a claim against the insurance policy. Generally, policyholders are required to submit a written notice to the insurance provider stating all the required details to intimate a claim.
Subsequently, they need to submit a set of documents including – claim form, documents supporting the reported claim, incidence report, etc. Notably, the exact documents required depend on the type of claim intimated.
- Speedy claim redressal
Typically, the claim settlement amount gets confirmed within a month of receiving claim intimation. It comes in handy for policyholders who are required to settle their legal or financial obligation urgently.
In case professionals like medical practitioners need additional financial assistance to meet their funding requirements for a business practice; they can avail a personal loan for doctors in India from leading financial institutions like Bajaj Finserv.
The lender also extends attractive benefits like pre-approved offers to customers to facilitate a hassle-free experience of availing finances. Typically, such offers can be availed on multiple financial products, including personal loans and business loans. Check your pre-approved offer online by just entering your name and contact number.Other than these, indemnity insurance policies come with simple eligibility criteria and a hassle-free application process. Collectively, all of these features and benefits make it reasonable for business owners to avail a suitable professional liability insurance plan. However, individuals may consider availing a professional loan from a trusted financial institution if they need any additional assistance with their business practice.