“To err is human” but in a highly competitive professional world, the margin for errors is very thin.
A recent example is a Dh50million suit for compensation by a leading bank against a hotel. Ask any lawyer and you are bound to find a long list of civil suits.
The issue becomes more serious when accusations of negligence are made against professionals. Professional Indemnity Insurance covers such as doctors, architects, engineers, lawyers, financial consultants, chartered accountants and contractors, can make errors while discharging their professional responsibility.
Doctors are exposed to the risk of claims due to neglect, wrong treatment or diagnosis; engineers for faulty designs; lawyers for wrong advice etc.
The professionals could find themselves sued for such mistakes, resulting in court battles, requiring prolonged time and effort of a defendant.
PI insurance is meant only for civil liability claims and does not cover criminal acts or acts which violate the law. Having an insurance policy that covers professionals for their work is important because it allows them to offer services without having to build in the potential costs of any mistakes they might face in the future. Without such a policy, professionals are exposed to a great deal of personal and business risks.