Page 5 - Life Insurance Today February 2018

Cover Story

SHIELDING

PROFESSIONALS

FROM CLAIMS

MADE AGAINST

THEM BY THEIR

CLIENTELE

T here has been a rise in consumer awareness. errors & omissions (E&O), is a form of liability insurance

Courts are more consumer friendly now and
which helps protect professional advice and service-
patients have sued hospitals and doctors
providing individuals and companies from bearing the full
malpractice or negligence and the courts have
been asking doctors and hospitals to pay for their mistakes. cost of defending against a negligence claim made by a
client, and damages awarded in such a civil lawsuit.
If a professional is alleged to have provided inadequate
The coverage focuses on alleged failure to perform on the
advice, services or designs to a client, professional part of, financial loss caused by, and error or omission in
indemnity insurance provides cover for the legal costs and the service or product sold by the policyholder. These are
expenses in defending the claim, as well as compensation causes for legal action that would not be covered by a
payable to their client to rectify the mistake. Professional more general liability insurance policy which addresses
liability insurance (PLI), also called professional indemnity more direct forms of harm. Professional liability insurance
insurance (PII) but more commonly known in the US as
may take on different forms and names depending on the
About the author profession, especially medical and legal, and is sometimes
required under contract by other businesses that are the
Mr Jagendra Kumar is currently the beneficiaries of the advice or service.
Corporate Head (Training) at Shriram
General Insurance Company. Mr Kumar is a Professional liability insurance policies are generally set up
prolific writer and has wide experience in based on a claims made basis, meaning that the policy only
the general insurance industry. Before covers claims made during the policy period. More
Jagendra joining SGI he was the Ex. CEO in Pearl
Kumar specifically a typical policy will provide indemnity to the
Insurance brokers.
insured against loss arising from any claim or claims made
“What the mind can conceive, it can achieve.”

Life Insurance Today February 2018 5

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