A lawsuit can be painfully expensive and could cause significant financial loss for the defendant. To prevent such situations from arising, a Chartered Accountancy firm can buy professional indemnity insurance for Chartered Accountants.
Professional indemnity insurance for Chartered Accountants in India compensates for all the costs incurred by the insured party during a lawsuit. It ensures that the insured party does not suffer significant financial losses.
Upon buying professional indemnity insurance for Chartered Accountants, a firm gets protection against claims made by a third party during the insurance policy tenure, usually 12 months. The claims may, of course, arise as a result of negligence, malpractice, and other errors, made by the insured while offering professional advice or service to the claimant.
Professional indemnity insurance for Chartered Accountants in India indemnifies any professional liabilities of the insured but only for claims made during the policy tenure. So, if the client makes any claims before the activation period of the insurance policy, the insurer will not cover the losses incurred.
A firm can opt for professional indemnity insurance for Chartered Accountants with a retroactive clause to prevent such an occurrence.
Some of these exceptions are:
Despite a chartered accountant’s most sincere and diligent efforts, errors may occur, resulting in financial loss for the client. In such cases, professional indemnity insurance for Chartered Accountants offers a safety net for the insured to fall into and avoid suffering tremendous financial losses.
Firms need to get professional indemnity insurance for Chartered Accountants to protect the business and the employees against third-party claims and allegations.
- Professional Indemnity - Chartered Accountants
- Product Code: 4024
- Product UIN: IRDAN115CP0024V01201920