Asked by Mercedez Miller on May 01, 2024
Verified
Which of the following is true about professional indemnity insurance?
A) It provides liability coverage in the event that a professional is sued for failing to live up to his or her professional responsibilities.
B) It does not cover malpractice claims, only negligence claims.
C) Doctors and lawyers are eligible to purchase this insurance, but not other professionals.
D) Professionals purchase malpractice insurance, not professional indemnity insurance.
E) Only accountants who are certified public accountants may purchase professional indemnity insurance.
Professional Indemnity Insurance
Insurance that provides coverage to professionals against claims made by clients for loss or damage due to negligent services or advice.
Liability Coverage
A type of insurance that provides protection against claims resulting from injuries and damage to people or property.
Malpractice Claims
Legal claims made against professionals (e.g., doctors, lawyers) for failing to provide proper services, resulting in harm to the claimant.
- Comprehend the purpose of professional indemnity insurance policies and what they insure.
Verified Answer
ZK
Zybrea KnightMay 06, 2024
Final Answer :
A
Explanation :
Professional indemnity insurance offers liability coverage to professionals for failing to fulfill their professional duties, including negligence, errors, or omissions. It is not limited to specific professions and covers more than just negligence claims, making options B, C, D, and E incorrect.
Learning Objectives
- Comprehend the purpose of professional indemnity insurance policies and what they insure.