It has been an interesting period for Zimbabwe in the last month or so. Both local and international news was ablaze with a lot of stories on Zimbabwe. With some international media houses unable to be on the ground in Zimbabwe, I saw some asking for permission to use photographs or videos taken by ordinary citizens. The reason being journalist are required to provide their service with a certain level of professionalism and that includes crediting owners of photographs they use. In the event that they use a picture without the owners consent, that would be unprofessional and also it could lead to legal action and financial losses. However not only journalist are required to provide their services with a certain level of professionalism. Many other businesses are required to act with professionalism and can face legal action if they don't. This means a lot of other people are at the risk of legal action in the event that they don't perform their duties with expected professionalism. There's an insurance policy made specifically for this type of risk called Professional Indemnity Insurance.
What is Professional Indemnity Insurance?
Professional indemnity insurance is a type of insurance that protects you or your business in the event that someone claims that you didn't give them adequate services, advice or designs. It covers the costs to defend yourself or your business legally against such a claim and also the costs to compensate or correct these mistakes or the cost of settling the claim. So you would say this policy protects you or your business from a disgruntled customer who could have lost money, health, life etc due to the advice or service you gave them. It is important that you cover yourself or your business in the event that you make a mistake. Its important to know that no matter how experienced or knowledgeable you are, there is always room for mistakes, even more when you run a business were you can not supervise everyone work. Sometimes allegations can still come regardless of you doing the right thing therefore you have to be protected when they do come.
What does Professional Indemnity Cover?
Some of the covers under the policy include but are not limited to
1. Professional negligence - making mistakes through carelessness for example giving wrong advice to a client
2. Infringement of copyright or intellectual property rights - for example using a photograph on your website without the permission from the owner
3. Defamation and libel - when your words end up causing harm to the reputation or livelihood of another person or organisation
4. Breach of confidentiality - happens when you share confidential information about a client with another party without the consent of the client
5. Loss of a clients data, documents, goods, money etc with which you are made responsible for
1. Professional negligence - making mistakes through carelessness for example giving wrong advice to a client
2. Infringement of copyright or intellectual property rights - for example using a photograph on your website without the permission from the owner
3. Defamation and libel - when your words end up causing harm to the reputation or livelihood of another person or organisation
4. Breach of confidentiality - happens when you share confidential information about a client with another party without the consent of the client
5. Loss of a clients data, documents, goods, money etc with which you are made responsible for
Its best for you to find the correct professional indemnity insurance for your profession and make sure you are covered for these risks.
Who should take professional Indemnity cover?
Any person or business that provides professional services or expertise, skills, advice or that have access to information that is confidential, or that could produce information that could infringe copyrights or intellectual rights should take this policy.
Typical purchasers of this policy are accountants, architects, engineers, financial advisers, lawyers, insurance consultants and brokers, doctors and journalists.
Do you need Professional Indemnity Insurance?
If you provide services, advice or designs you definitely need professional indemnity! While you could be the best in your business, one mistake could ruin your entire operations. Sometimes it could be your staff responsible for this mistake and not even you as the owner of the business. If your client suffers a huge loss because of that mistake they will likely come at you for re-compensation. Defending yourself from claims of malpractice, breach of duty or misconduct will cost you money and time. So the policy protects your business by covering you for the cost of such claims and also legal defense costs.