It was made for professionals who offer or provide any kind of advice or service to their clients. It is planned to provide financial protection you against legal expenses and claims for indemnity to third parties which may happen due an act, fault or violation of professional accountability in the course of your industry.
If a fault or error happens throughout your profession or service that consequences in financial thrashing or damage to a third party (e.g. a customer)—that customer may take lawful procedure in opposition to you to recover their damages.
Professional Indemnity insurance is to protect both your assets and your status.
Indemnity value policy cover holder will get cover up to 3/4th of his previously declared income, where, the term pre-declared income is, an average of monthly income for any period of consecutive months for either 2 or 3 years earlier to claim. You have to file income evidence at the period of claim and it is not necessary to show income evidence during the policy claim. It is because Indemnity policies are generally reasonably priced than agreed value policies.
This may be suitable for someone who has reasonably constant income and doesn’t expect it to vary, or someone who anticipate their earnings to increase soon after applying for cover.
Indemnity value cover ensures: