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Should a CA Buy Professional Indemnity Insurance?
January 03, 2025
|Mint Ahmedabad
I am a newly qualified chartered accountant. I would like to start my own practice, which would focus on audit and advisory services. Would it make sense for me to buy professional indemnity insurance? How would it help?
-Name withheld on request
Professional indemnity insurance is meant for professionals like you. The policy is meant to protect the professional from lawsuits due to professional negligence. Claims could come from clients or anyone who acted based on their advice or a published report. Such claims aim to recover financial damages suffered by the complainant. During this litigation process, the professional incurs various costs. In case the court decides against the professional, then the damages awarded by the court would be an additional cost. Both these costs are payable under the policy.
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