3 Mistakes to Avoid While Purchasing Professional Indemnity Policy

Professionals like doctors already know the numerous benefits that they get from the professional indemnity policy. This type of insurance policy provides financial assistance to them in the case if they are held responsible for professional negligence. 

However, do you also know that there are three most common mistakes that these professionals often make while investing in the policy? Here are these mistakes that you must avoid if you are too planning to buy this insurance policy.

 
Overlooking The Difference Between Types Of Policies

It is necessary to have comprehensive knowledge about the insurance policy that you intend to buy to ensure that you have made an investment in the right place. When it comes to professional indemnity policy, people often make a mistake of purchasing insurance without knowing the difference between the types of policies.
There are two types of coverages that you will be offered when you will go to buy this insurance policy, namely, occurrence and claims made. Occurrence coverage provides protection against the unintended negligence/injury that happened when the policy was active.

However, the claim can be made later, even when the policy has expired. In the claim coverage, you are required to make a claim while the policy is active. But here the injury may occur during or before buying the policy. To know the detailed difference, you must ask your policy provider about it before making the purchase as it will help you to make the right choice that suits your needs.
 
Investing In Insufficient Insurance Coverage

In order to save their money, some people often end up purchasing insufficient insurance coverage. Without comprehending the consequences in the long-term. You might be happy today by curtailing the cover to save premiums, but it can be costlier for you in the long-term. Remember that your purpose of buying the insurance is to get complete financial coverage for professional negligence.

But there is no use of investing your money in the insurance if your coverage is not sufficient to protect you financially as in that case you may have to pay for losses from your pocket while making the claim. Though your decision of buying the professional indemnity insurance is right, it will be only fruitful if it gives you complete coverage.
 
Not Paying Attention To The Terms And Conditions

One of the most prominent mistakes that people often make is not reading the terms and conditions. Paying attention to only coverage is not enough, you must not overlook the terms and conditions of the policy. Go through it properly, read and understand it thoroughly before investing in the insurance.

Ask the insurance provider to make you understand each and every part of the terms and conditions. Pay heed to all the exclusions, like contractual liability, penalties, loss of goodwill, defamation, etc. So, do not make the mistake of overlooking this section of the policy. If you do, then you may regret later for your decision.
 
Conclusion

These are the three most common mistakes that people often make while purchasing the policy of professional indemnity for doctors. Thus, they should avoid these mistakes to ensure that they have not made a mistake by investing in the policy.

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