The Main Indemnity Insurance Extensions

If you provide professional services to clients, you must have indemnity insurance. It covers your professional liability in case of negligence, error or omission. These are the main items which you will be insured for. At the same time, most insurers offer extensions as well. These are additional cover benefits which are designed to provide a higher level of protection. Find out more about the main ones and decide whether they will be useful to you.

Loss of Document

If you lose any documents which are important for a client and they cannot be retrieved, then you will be in serious trouble. This can lead to financial and other losses for your customer. If this is the case, the person will have the right to claim compensation. With an indemnity insurance extension which provides protection in case of document loss, the policy will pay the required compensation to the client. This extension is valuable to businesses which work extensively with client documents like legal, accounting and financial companies.

Defamation, Slander and Libel

Defamation occurs when a business or a professional makes a false statement about another company or physical person and this statement causes reputation damage. Slander is the oral form of defamation while libel is the written or physical form. Basically, if you offend a client of yours publicly, the extension covering defamation, slander and libel will help you provide financial compensation to this individual or company. This extra cover benefit is particularly useful to advertising agencies and media businesses.

Breach of Confidentiality

If you have signed a confidentiality agreement with a client and confidential information leaks out, the customer will have the right to demand compensation from you. You can expect to pay a higher compensation if the client is bigger or if the information is very sensitive. The indemnity insurance extension which covers breach of confidentiality is particularly suitable for medical practitioners and legal professionals.

Employee Fraud and Dishonesty

When an employee of yours commits fraud or is dishonest, you will be jointly responsible. However, if you are covered against such an event, the insurance policy will cover your part of the liability. If the fraud has caused loss to you, you will receive compensation as well. Typically larger companies with many employees opt for this type of extra benefit.

Last, but not least, you can get an indemnity insurance extension which covers your professional liability arising from a previous business or occupation. This extra benefit is highly useful for professionals who start a new practice.