Professional liability insurance

1. Submitted by:
MUHAMMED ASHFAQUE M
Reg. No: 19395023
MBA 1st Year
Submitted to:
Dr. S.A. SENTHIL KUMAR
Professor & Head,
Department of Management
PONDICHERRY UNIVERSITY
KARAIKAL CAMPUS
PROFESSIOANAL LIABILITY INSURANCE

2. PROFESSIOANAL LIABILITY INSURANCE
Professional Indemnity Insurance is an insurance
policy providing risk coverage to professionals against any
probable claims arising due to their mistakes or errors. If a
third party receives any harm or damage to life or
property due to negligent professional practices, professional
indemnity insurance covers the risks caused to
professionals.
Professional liability insurance (PLI), also called professional indemnity
insurance (PII) but more commonly known as errors & omissions (E&O) in the
US

3. TYPES OF PROFESSIONAL INDEMNITY INSURANCE
Malpractice Insurance:
This mostly offers coverage to physicians and licensed health care professionals
like a dentist, nurse.
This is useful for professionals whose any wrongful practice can lead to bodily injury
and other issues.
Errors and Omissions Insurance (E&O):
This is mainly meant for business professionals like attorneys and architects. It
covers the financial risks
associated with negligence, errors and omissions. It also covers defence costs.
Civil Liability Cover:
Civil indemnity covers all the risks not included in the basic insurance cover.

4. WHAT ALL PROFESSIONAL INDEMNITY INSURANCE COVERS?
 Any legality involved due to bodily injury or death caused by professionals
while offering their services
 Defence costs, its fees and other expenses

5. HOW PROFESSIONAL LIABILITY INSURANCE WORKS
 Evaluate the clients, and the kind of trouble we can get into if any client
files a case against us
 The evaluation will help to decide the insured amount which can be done in
consultation with the insurer
 Check and compare the insurance companies and plans offered
 The premium to be paid will depend on the sum insured
 Submit the proposal form along with the required documents
 In case of any eventuality, immediately inform the insurance company
 Submit the claim form and other documents
 After an assessment, the claim can be either accepted or rejected
 If not satisfied with the case, we
can approach the court of law

6. ELIGIBILITY CRITERIA
 Professionals working in health sector, architecture, accounting
 Lawyers, attorneys, solicitors, counsels
 Organisational bodies like hospitals, medical institutions, legal firms,
construction companies, auditing firms
 Brokers, management consultants, engineers, IT professionals, etc.
 Some specific plans designed for software and website developers

7. PROFESSIONAL INDEMNITY INSURANCE CLAIM PROCESS
 On the occurrence of any eventuality, you should inform the insurance
provider as soon as possible
 In case of receiving any legal notice, you should share the document with
the insurance company immediately
 Submit the duly filled in claim form along with other required documents
 After an assessment, if the insurance company finds it a fit case, it will
approve the claim, else reject it
 If you are not satisfied with the case, you can approach the court of law

8. DOCUMENTS REQUIRED FOR CLAIM PROCESS
 Duly filled in claim form
 Legal notice, if served by the client
 Registration certificate of professionals
 Certificate for institutions like hospitals
 Clients’ details to evaluate the degree of financial loss

9. CASES WHERE WE CAN’T CLAIM
PROFESSIONAL INDEMNITY INSURANCE
>> Bankruptcy
>> Damage with an intent to tarnish the image
>> Infringement of trademarks, copyrights and patents
>> Terrorism and war damage
>> Abuse of substance like alcohol and drugs while offering services
>> Fines and penalties
>> Criminal activities

10. COMPANIES OFFERING PROFESSIONAL INDEMNITY INSURANCE
IN INDIA
1. ICICI Lombard
2. Reliance General Insurance
3. Bajaj Capital
4. Oriental Insurance
5. United India Insurance

11. References
https://www.paisabazaar.com/commercial-insurance/
professional-indemnity-insurance/
https://en.m.wikipedia.org/wiki/Professional_liability_insurance

12. THANK YOU