Professional Liability Insurance (PLI), is also known as Professional Indemnity Insurance (PII) or as Errors & Omissions (E&O). This is a liability insurance cover that protects individuals from professional risks and related legal expenses. It provides indemnity in case a third-party sustains injury, harm, death or damage to property due to the professional service or advice provided by the insured. Most common cases where professionals have been sued in court are for negligence or malpractice.
In most cases, this insurance policy can be availed by professionals such as lawyers, doctors, architects, Chartered Accountants, etc. and also by professional organizations and bodies such as hospitals, law firms, BPOs and so on. Some of the leading insurance providers that offers Professional Liability Insurance includes New India Assurance, HDFC Ergo, Bajaj Allianz, United India Insurance, ICICI Lombard and National Insurance Company. The scope of the cover varies from insurance provider to insurance provider.
Cover
This policy covers any legal liability arising out of errors, omissions or negligence of a professional while rendering a service, which causes injury to a third party or damage to third party property.
Group Policies
Group policies are also available for professional indemnity cover. Members of one profession will be covered. A discount of premium is also applicable as per the number of members added under the group policy.
Defense Expenses
Defense expenses are also covered under this policy. All the fees and charges applicable on the defense of the insured in court, is paid out of the sum insured. This is limited to India only.
Exclusion
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.
Eligibility
This insurance policy is meant for professionals such as:
Medical establishments, Doctors and other medical practitioners, architects, engineers, interior decorators, advocates, lawyers, counsels, solicitors, financial accountants, Chartered Accountants, management consultants, etc.
Some of the general exclusions under this policy are as follows:
Credit Card:
Credit Score:
Personal Loan:
Home Loan:
Fixed Deposit:
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