Important points to know about crime insurance policy

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QUESTION 1: How is the professional liability cover different from other liability covers?

REPLY: The professional liability insurance differs from other liability insurance policies in a few ways. These are as follows:

i). While other liability insurance policies usually specify the per occurrence limit, (there is usually a maximum limit for each claim), there is no limit per occurrence in case of a professional liability policy. Further, no distinction is made between bodily injury and property damage liability.

ii). Professional liability insurance is not restricted to accidental acts, faulty diagnosis or faulty performance is also covered. Deliberate acts giving unintended results are also covered in the policy.

iii). Professional liability policies usually cover the damage caused to the property in the custody or care of the insured as well.

iv). Professional liability insurance does not allow the settlement of the claim without the prior approval of the insured.

QUERY 2: Is a doctor also equally liable for the negligence of his Assistant and Nurse? (c) What is the protection assured under a Crime Insurance Policy? (d) Differentiate between a Fidelity Bond and Crime Insurance?

REPLY: The circumstances, applicable legislation, and the doctor’s connection with the assistant and nurse will all play a role in determining whether a doctor is responsible for the actions of their assistant and nurse.

Here are some crucial things to remember:

i). Vicarious Liability: If the negligent conduct occurred while the assistant or nurse was performing their job duties, many jurisdictions will hold the doctor vicariously accountable for the negligence of those individuals. This means that the doctor may be held accountable for the assistant’s or nurse’s acts if they were performing their job obligations and acting under the doctor’s direction or supervision when the negligence happened.

ii). Standard of Care: Medical professionals have a responsibility to give their patients an acceptable quality of care. A doctor may be held accountable for their own negligence in the supervision or training of assistants and nurses if that failing to do so contributed to the negligence or harm that resulted.

iii). Independent Contractors: The doctor’s liability for the assistant’s or nurse’s carelessness may differ if they are independent contractors as opposed to employees. In general, doctors may not have as much direct control and oversight over independent contractors, and their accountability may be restricted to their own acts or omissions rather than those of the independent contractor.

iv). Non-Delegable Duties: In some circumstances, such as when it comes to patient safety and specific medical treatments, doctors may have non-delegable responsibilities. Even if they were not actively involved or supervising at the time, non-delegable obligations ensure that the doctor cannot escape responsibility for the actions or inactions of their helpers and nurses. The doctor is still in charge of making sure the patient is given the right care and is safe.

QUERY 3: What is the protection assured under a Crime Insurance Policy?

REPLY: There are two types of financial protection that are available against the losses caused by crime.

They are fidelity and surety bonds and

burglary, robbery and theft insurance.

A bond is a legal instrument in which a third person (surety) ensures the performance of contract properly by the principal or the obligator.

A fidelity bond deals with assurance of bonafide behavior by an employee during the course of his employment.

In fidelity bond, the surety assures the employer of trust worthiness and honesty of the employee and agrees to pay the damages that arise due to the dishonest acts of that employee.

Money and security coverage pays for money and securities taken by burglary, robbery, theft, disappearance and destruction.

QUERY 4: Differentiate between a Fidelity Bond and Crime Insurance?

REPLY: A fidelity bond and crime insurance are both types of insurance coverage that protect against financial losses resulting from fraudulent or dishonest acts committed by employees or third parties.

However, there are some differences between the two:

Fidelity Bond: A fidelity bond, often referred to as an employee dishonesty bond or employee dishonesty insurance, is a type of insurance that guards against losses incurred by enterprises due to employee dishonesty. It usually compensates company losses brought on by employee theft, embezzlement, forgery, fraud, or other unethical behaviour.

Employers typically buy fidelity bonds to protect themselves against monetary losses resulting from wrongdoing on the part of their workforce.

Main characteristics fidelity bond’s are: Fidelity bonds explicitly cover damages brought on by an employee’s dishonest behaviour, such as theft or embezzlement.

i). Fidelity bonds typically demand the participation of an employee in order to activate coverage.

ii). Customizable Coverage: Fidelity bonds can be made to fit a company’s particular requirements, including coverage limitations, the kinds of dishonest acts that are covered, and the personnel or positions that are covered.

Crime Insurance: On the other hand, crime insurance is a broader category of insurance protection that guards against monetary losses brought on by a variety of illegal activities. It covers losses brought on by both third parties and employees, going beyond employee dishonesty.

In fidelity bond, the surety assures the employer of trust worthiness and honesty of the employee and agrees to pay the damages that arise due to the dishonest acts of that employee.

Money and security coverage pays for money and securities taken by burglary, robbery, theft, disappearance and destruction.

A wide range of criminal behaviours that could cause a firm financial harm are covered by crime insurance. Crime insurance’s key characteristics are as follows:

i). Coverage for Various Criminal activities: Losses brought on by employee dishonesty, forgery, theft, robbery, computer fraud, extortion, and other criminal activities are often covered by crime insurance.

ii). Greater Coverage: Unlike fidelity bonds, crime insurance can also cover losses brought on by third parties, like customers, suppliers, or outside fraudsters.

iii). Protection that is Complete: Crime insurance offers a more complete coverage option, addressing several criminal dangers that a firm may encounter.

DISCLAIMER: the case study presented here is only for sharing information with the readers. The views are personal, shall not be considered as professional advice. In case of necessity do consult with professionals.