Professional indemnity – the cover for professionals against unforeseen risks

Posted on 12:46 pm at Apr.03, 2009 in insurance

The importance of insurance is felt in every sphere of human life. To live is to risk. One can never eliminate risk all together from his life. But the risk can be shared. Insurance distributes the risk undertakes by one person among the society and promises to compensate the one in need. Insurance just covers you from womb to tomb.

Insurance pervades in every aspect of our lives including our professions. It is really queer to wonder how one’s profession could be insured. It may be said that a professional indemnity cover indemnifies an individual against financial losses he suffers due to compensation claims put forward by his clients.

When an individual avails professional service he expects certain degree of professional conduct. If the professional fails on his part, the client may drag him to court and claim compensation thereof. This is mostly felt in case of legal professionals. Lawyers on their part are required to maintain secrecy about confidential information of his clients. Any disclosure on the part of lawyer may harm the interest of his client compelling his to file suit against him. Again in the course of professional conduct, if the lawyer proves to be incompetent, his clients may undertake legal proceedings for compensation. For a freelance lawyer or a legal consultant to an organization, the result may take shape of a financial quandary.

Add to it the additional career threats of a practicing professional – be it a lawyer, engineer, or creative advisor. While any negligence on the part of the professional at the time of service may substantially harm his/her reputation; hefty penalties can act as dangerous drag against the future growth of the professional. Here comes the professional indemnity insurance as the ultimate support.

The need for a professional indemnity cover is also felt in other professions like that of accountants, real estate agents, financial or insurance advisors or even software developers. A professional indemnity cover indemnifies you of these potential setbacks and helps you business gain its foothold once again.

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For further information on professional indemnity and professional liability insurance, please contact Coulson Pritchard Associates on 01480 470220 or visit at www.coulsonpritchard.com

Article Source: http://www.articlesbase.com/insurance-articles/professional-indemnity-the-cover-for-professionals-against-unforeseen-risks-848989.html