There is an oft thought notion that having few expectations leads to less disappointment. But this is not true when one approaches a professional to render a business service. When one professes to have greater than average expertise, the bar of expectation is automatically raised. A professional cannot err. And when they do...the impact can be far reaching. Insurance companies in various countries have tried to create professional insurance policies to create a protective buffer for professionals, to avoid careers, livelihood and lives being disrupted by negligence suits. In fact even insurance professionals today try to protect themselves under the purview of professional insurance seeking coverage for acts of omission committed by the insurance agent in the event of a liability suit or any kind of property damage to the client. This is itself is a pointer as to how professional insurance is now regarded as an important component, even those safeguarding are now getting coverage for themselves. In fact in some professions like Law, Accounting and Financial Services it is legally required and often forms a part of the contractual obligations.
The consumer across the globe has become very aware of his legal rights and his right to move court if he feels he has due cause. Any damage to person, property or financial standing as a result of professional advice can thus have disastrous outcomes for the professional. There are legal fees, court costs, defense costs and the irony is that in an increasingly litigious world, some of the suits filed are without foundation. Yet reputations need to emerge unscathed and professionals need to continue earning. Management, Computer Consultancy, Publishing, Engineering, and Architectural Design, Nursing...any profession that requires a dispensing of professional advice needs professional insurance. Insurance companies are in constant competition to provide the best possible coverage, trying to give the maximum possible mileage from the premium paid. There is a underlying realization that is now well entrenched in the mind of both the insurer and the agent, that a professional insurance policy is critical to peace of mind and smooth running of business that there is always an attempt to customize a policy that is both effective as well as affordable. Loss of documents, charges of willful negligence, business losses due to incorrect figures and erroneous projections, omission, wrong professional advice...the charges can be anything and a professional by virtue of his standing is always vulnerable. In fact some
Insurance firms even provide an add on like run off cover to add value to the coverage. This means that even after the professional retires or ceases a business, the coverage continues for a stipulated period to protect against claims that have been made for work done previously.
When choosing professional insurance coverage, there are so many terms that need to be understood, so many choices to be made, so many parameters to be delineated that one needs plenty of guidance before signing on the dotted line of the insurance contract and paying the first premium cheque. One needs access to an insurance company that has accumulated years of experience and expertise. A top notch quality service is very important.