You are a professional dog walker and your wealthy clients bequeath to you the very important responsibility of walking their prized possession - their pedigree dogs. While walking a Siberian Husky, an Afghan Wolfhound and a Chihuahua one afternoon, you chanced upon a stray cat blocking your path. Dogs being dogs became agitated and pursued the hapless feline dragging you along.

In the frenzy of the chase you and the canines bumped into and damaged the park drinking fountain, scraped the fender of an expensive BMW, and plowed through a crowd of helpless elderly causing several of them to fall and sustain injuries. The worst thing is that since the tiny Chihuahua couldn't keep up with the pace, it was dragged along eventually breaking a leg. Given the nightmare that transpired, how do you cope up with the liabilities you will be facing? If you have professional indemnity insurance you may worry less, but you are not totally out of the woods, at least not yet.

What Is Professional Indemnity Insurance?

Professional indemnity insurance is a type of insurance, which seeks to protect professionals like you from claims made by clients. In the event that you make a mistake while practicing your profession and this blunder causes damage to life and property, provided you have the appropriate professional indemnity insurance, claims against you will be handled by the insurer. Well that takes care of the claim which will likely be made by the owner of the Chihuahua, but what about claims by third parties like the park administration, the owner of the BMW, and the injured elderly? Depending on your insurance coverage, these claims may also be taken into account.

Coverage of Professional Indemnity Insurance

In its most basic form, this type of insurance covers negligence. You took a short cut knowing very well that this will lead to a path festooned with stray cats. You were negligent and your actions brought damage to limbs (both human and animal) and property. This type of insurance covers just that. However, for a higher premium, you may opt for expanded coverage, which includes breach of duty and civil liability. Of course for an even higher premium your insurance may include Acts of God - like your dog/s getting struck by lightning. A value analysis is in order here. Do you really need a very expansive coverage or will a few major ones be sufficient? Your insurance professional should be able to give you sound advice on this matter. Hence, it is necessary to find an insurance professional who is capable and whom you can trust.

Who Needs Professional Indemnity Insurance?

In some countries it is mandatory for doctors and lawyers to avail of this kind of insurance. Given the nature of their profession, it is highly probable that work-related claims will be made against them. So to protect them from possible financial adversity caused by these claims, availing of professional indemnity insurance is advised. Professionals like accountants, architects and design engineers may also benefit from this. Basically, if you feel that the practice of your profession exposes you to claims, then it may be high time for you to talk to your insurance professional about professional indemnity insurance.

Maximizing Your Insurance Package

It is most likely that you have other insurance coverage - life insurance, accident insurance, motor vehicle insurance, etc. If such is the case, you may package your professional indemnity insurance with these and benefit from a lower premium. It will be like a package deal, which encompasses all your insurance requirements. This will also give you the added benefit of simplifying your insurance transactions since you are dealing only with one person/provider.

So as a professional dog walker you know your options. Considering the meager income from your profession, professional indemnity insurance may not be warranted. So what do you do about the claims you are likely to face? How do you settle your liabilities? I suggest you move to a faraway place and change your profession. You may even want to change your identity.



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