Professional Indemnity Cover Is Key For A Sustainable Business

By Soko Directory Team / Published September 19, 2022 | 12:23 pm



Women

The nature of the workplace is that people seek to carry out their duties professionally, upholding the organization’s code of conduct and values. While the intention of a professional might be good, there are challenges that can arise due to negligence or errors and omissions exposing someone to situations resulting in legal consequences. Since such circumstances are not fully predictable it is important for professionals to take an insurance cover that mitigates this risk. The intent than will be to prevent financial or operational losses in case of lawsuits filed against them.

Locally, while some entities require that their staff have a professional indemnity cover, some do not. However, it is advisable that professionals exposed to this legal risk take up an insurance cover as a measure to cushion the business in the short and long term.

Among the people who need this insurance, protection is architects, lawyers, engineers, accountants, and medical practitioners. These are professionals whose daily operations make them vulnerable to client dissatisfaction, which becomes difficult to resolve.

Other characteristics include practitioners who have gone through specialized training in a particular field with defined qualifications to practice work and educated professionals whose service is at a fee. In addition, the specialists are regulated by a governing body either a professional association or by law with clear professional standards.

In this regard, taking a professional indemnity is beneficial to the business owner, their clients, and the professionals working for that entity.

The professionals

While professionals do their best to discharge duties in a professional and lawful way, sometimes, they may encounter claim suits due to malpractice while applying their skills and expertise. Since this is not something that can be accurately forecasted, it is prudent for businesses in these fields to be prepared for any eventuality by purchasing a professional indemnity cover.

Once the cover is in place, it will empower employees to carry out their duties without fear of retaliation or monetary loss. In the event of a lawsuit, practitioners will continue working with the assurance that the insurer will cover the legal fees. This eliminates distress and can help increase productivity.

Be it lawyers, doctors, teachers, engineers, or other professionals, having such a cover has proven to be important due to the benefits cited, including the protection from monetary and reputational loss.

The business

The professional indemnity cover promises a continuation of business regardless of legal proceedings or charges brought against the business. In this regard, the firm is able to build trust with its suppliers and clients who are assured of consistent work delivery with minimal to no disruption. In addition, the company is able to avoid huge financial burdens often tied to legal proceedings or processes.

CIC Professional Indemnity Cover

The CIC professional indemnity product covers professionals against claims that may arise because of errors, omissions, misrepresentation, or negligent advice provided in the course and scope of their services.

With cover limits of up to 10 million Kenyan shillings, professionals who meet the requirements have access to a cover that builds their reputation and confidence as efficient and well-prepared professionals. The cover, which has additional extensions for occurrences such as loss of documents, dishonesty of employees, defamation, partners’ previous business, and outgoing partners, can be an integral add-on to the business and should be a key consideration by all professionals.

Conclusion

A professional indemnity cover might have limits on what it can cover but it provides a hedge against key legal and financial risks. As such, be it as a business or individual this cover is necessary for reputation management and business continuity.

The writer, Joseph Kamiri, is the General Manager – Marketing and Customer Experience – CIC Group




About Soko Directory Team

Soko Directory is a Financial and Markets digital portal that tracks brands, listed firms on the NSE, SMEs and trend setters in the markets eco-system.Find us on Facebook: facebook.com/SokoDirectory and on Twitter: twitter.com/SokoDirectory

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