What is professional liability insurance?
Professional liability insurance offers financial coverage to medical professionals against claims associated with errors and omissions when providing professional services. It is also popular as errors and omissions insurance; it provides professional liability coverage for any third-party claims arising due to misdiagnosis, negligence, incorrect treatment, and many others.
Bajaj Finserv extends a doctor liability insurance policy with up to Rs. 1 crore coverage to save medical professionals from such troubles. It will provide coverage for a host of professional liabilities.
Professional indemnity insurance coverage for doctors:
- Misdiagnosis of illness
- Errors, omissions, negligence in surgery
- Negligence in treatment (unintentional or otherwise)
- Improper treatment advice
- Errors in prescribing dosage
Professional liability insurance coverage for doctors is useful in third-party or patient claims due to any financial loss, injury or death arising from the issues.
Professional liability insurance coverage: Inclusions and exclusions
Inclusions:
Professional liability insurance covers legal liabilities arising from negligence, errors, omissions, or malpractice while providing services. If a third party is harmed due to negligence and seeks compensation, the policy covers the costs.
Coverage includes:
- Mistakes, errors, and oversights
- Missed deadlines
- Breach of contract
- Failure to deliver services
- Negligence
- Failure to meet professional standards
Exclusions:
- Criminal prosecution
- Harm caused while under the influence of drugs or alcohol
- Cyber liability, including data breaches and technical issues
Features of a professional indemnity liability insurance for doctors
Substantial coverage
Bajaj Finserv Professional Indemnity Insurance plan offers comprehensive financial coverage of up to Rs. 1 crore. Professionals can select the coverage amount depending on their practice size, budget and associated risk.
Reasonable premiums
Bajaj Finserv Professionals Indemnity Insurance plan of up to Rs. 50 lakh is available against a premium of Rs. 9,440. However, to receive coverage of up to Rs. 1 crore, one needs to pay a premium of Rs. 12,980.
All-round coverage against different risks
Besides the financial losses arising out of practice related incidents, medical professionals can also claim medical liability insurance policy in case of the following incidents:
- Cost of defence due to court proceedings
- Loss of valuable documents
- Expenses of filling a case of defamation, slander, etc., post proven guilty
- Breach of confidentiality
- Losses arising from third-party claims
With Bajaj Finserv, you can now enjoy minimum time in professional liability insurance claim redressal. Once you submit the required paperwork in order and comply with the terms and conditions of the policy, you will receive a settlement in 30 days.
How professional liability insurance works
Professional liability insurance may have different names based on the profession, such as medical malpractice for healthcare providers or errors and omissions insurance for real estate agents. This coverage is typically not included in standard homeowners or business policies.
Most professional liability insurance policies are claims-made, covering only claims and events during the active period of the policy. Occurrence policies, though rare, provide coverage for incidents that happened during the policy period, even if the policy expires. These policies indemnify the insured against losses due to errors, omissions, or negligence during their professional activities.
Who needs professional liability insurance?
If you work for a company offering services, its professional liability insurance (PLI) should cover your services. However, as a small business owner or independent professional, you may need to purchase your own policy, especially if you provide advice. In certain industries, having PLI may even be a legal requirement.
Examples of professionals who should consider this insurance include:
- Consultants
- Engineers
- Insurance agents
- Real estate agents
- Architects
- Accountants
- IT professionals
- Counselors
- Doctors and dentists
- Financial advisors
The process to claim the coverage amount
Follow the below-mentioned steps to make a claim for your professional liability insurance coverage.
- 1 Provide initial intimation of claim in writing with essential details
- 2 Submit the required documents like an incident report, record of claim report, etc.
- 3 Get the insurance settlement amount after paying deductibles
Depending on their previous claims history, individual medical practitioners can get professional liability insurance from Bajaj Finserv. Bajaj Finserv offers this insurance policy to medical professionals qualifying under MBBS, BPT, BHMS, BAMS, BDS, MD, MDS, MS, and MPT. For applicants with a history of previous claims, the categorisation is based on the opted limit.
Frequently asked questions
Professional liability coverage protects professionals like doctors from claims of negligence or wrongdoing, while general liability coverage protects businesses from claims of bodily injury, property damage, or personal injury arising from their operations.
Doctors can protect themselves against incidents such as misdiagnosis of illnesses, errors in dosage prescription, and others with the coverage benefits of professional liability insurance. Professional liability/professional indemnity insurance covers expenses incurred to defend against legal claims and protects professionals from the damages awarded by a court in case of litigation or settlement.
Yes, professional liability and professional indemnity refer to the same type of insurance coverage. It is intended to protect professionals against claims of negligence or wrongful acts related to their profession.
Professional indemnity insurance is not a mandatory requirement for doctors in India. However, taking professional liability insurance can provide coverage to doctors against financial liabilities arising out of practice-related incidents. The coverage and benefits of the insurance depend on several factors including the premium amount, history of previous claims, and others.
A professional liability insurance from Bajaj Finance is available for doctors with coverage up to Rs. 1 crore.
