What is professional liability insurance?
Professional liability insurance, often referred to as professional indemnity insurance or Errors and Omissions (E&O) insurance, helps protect professionals and service providers against financial losses arising from claims of negligence, mistakes, omissions, missed deadlines, or failure to deliver services as expected.
This type of insurance provides financial protection against legal expenses, compensation claims, and other liabilities that may arise from professional services rendered to clients.
For medical practitioners, the Bajaj Finance Doctor Liability Insurance policy offers coverage of up to Rs. 1 crore, helping safeguard doctors against a wide range of professional liability risks and legal claims that may arise during the course of their practice.
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
Why is professional indemnity insurance for doctors important?
Professional indemnity insurance for doctors plays an important role in protecting medical practitioners from the financial and legal risks associated with their profession. Given the nature of healthcare services, even unintentional errors can lead to claims that may have significant financial consequences.
Financial protection against legal claims
Medical professionals may face allegations of negligence, misdiagnosis, treatment errors, or other professional lapses. Professional indemnity insurance helps cover legal expenses, settlement costs, and compensation payouts arising from covered claims, reducing the financial burden on the practitioner.
A safety net during legal disputes
Defending a legal claim can be expensive, regardless of whether the allegation is ultimately proven or dismissed. Professional indemnity insurance provides financial support for legal defence costs, helping doctors protect their personal savings and assets while addressing professional liability matters.
Features of a professional indemnity liability insurance for doctors
Substantial coverage
Bajaj Finance 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 Finance 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 Finance, 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 Finance. Bajaj Finance 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.
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.
Professional liability insurance is commonly recommended for professionals who provide specialised advice or services, such as doctors, lawyers, architects, consultants, and accountants. While legal requirements vary by profession and jurisdiction, many organisations and clients may require such coverage before engaging professional services.
Yes, professional liability insurance is designed to cover claims arising from errors, omissions, negligence, or failure to deliver professional services as expected. Coverage typically includes legal defence costs, settlements, and compensation awarded under covered claims.
The requirement for medical liability insurance depends on local regulations, employer policies, and professional guidelines. Even where it is not legally mandatory, many doctors choose to maintain coverage to protect themselves against malpractice and negligence claims.
Yes, professional liability insurance and Errors & Omissions (E&O) insurance generally refer to the same type of coverage. Both are designed to protect professionals against claims resulting from mistakes, omissions, negligence, or inadequate professional services.
