What? – Professional indemnity is explained as that part of insurance which is liable to all the professional services required. It is, in short, referred as PI insurance and, in other cases, PL insurance. It guards all the legal expenses that are incurred for defending claim. It can also cover those costs which can be granted in case a person supposedly provided any insufficient service or advice. In other cases if an individual provided inadequate designs that reflected in loss to the client, all these charges can be covered through this process. Simply, it can be defined as a compensation that is payable to the particular client for rectifying a mistake made and pays the legal costs happened to defend a claim.
Who needs it? – Almost all the professions need to hold an insurance of professional indemnity. In a business destination country like Singapore, professional indemnity insurance Singapore made it mandatory for many professions. It is also important for anyone to have an insurance policy that matches and abides to their industry’s regulatory terms and requirements. Even in cases you might not be obliged to hold PI insurance, then remember, chances are you might end up paying huge amounts of money for paying legal fees and other payments related to managing compensations. Not included is all that money paid for defending any kind of allegation.
Which professionals need it? – To take up this insurance is no limitation. But, most people ask, who do you think requires it? Which professions or professionals might want it? Here you go.
Consultants – Both business as well as management consultants like marketing, education and training need it, as they might need to defend them in few instances.
Information technology professionals – They include all of them, from developers to programmers and consultants to contractors.
All the firms related to recruitment. They can be agencies or consultants.
Any type of designers, like website, interiors, graphics, to name a few.
Professionals related to fitness. They can be personal trainers, instructors of yoga or even dance teachers.
All the teachers, be it a Kindergarten or Post graduate. It includes tutors who teach part-time privately.
What is the cost of this insurance? – It varies. Many factors play an important role in giving a final count of cost in taking professional indemnity insurance. The factors might include the entire amount that needs to be covered. It also varies widely for different ranges of individuals and professional. When in doubt, consult the respective department and provide the details, such as the factors you might like to cover, and experts can always guide through the process.