Why professional liability insurance makes sense

A few weeks ago, a doctor and his staff in Pune, Maharashtra, were assaulted and his clinic vandalised by the relatives of the patient who alleged that the negligence of the doctor and his staff was responsible for the death of the patient. Such assaults on the doctors, paramedics and other hospital staff by the relatives of the patient have become common and are a cause for concern. Apart from the negative publicity that such incidents generate for the doctor and the medical establishment, the financial loss that such incidents can cause could be quite heavy.

These are professional hazards faced by not just doctors, but also by other professionals such as engineers, architects, lawyers, chartered accountants, among others. The civil or criminal liability arising out of error, omission or negligence on the part of these professionals could be financially crippling. But these professionals can protect themselves from the loss caused due to such errors, omissions and negligence by buying professional liability insurance policy. This policy provides cover and indemnifies the insured any legal liability to the third party arising out of errors, omissions and negligence in rendering professional service. The policy is issued for one year and has to be renewed by the insured every year to continue to get the insurance cover.

The policy, however, does not cover any wilful neglect or deliberate act on the part of the professional, any criminal act or violation of law, services rendered under the influence of intoxicants or narcotics, third party public liability or financial loss caused due to loss of goodwill or loss of business.

So, if you are any of the above professional, it would be prudent to buy the policy and give yourself the peace of mind to pursue your profession.