Professional liability refers to legal obligations realizable in any business organization. Based on the normal operations of business organizations, some of the major causes of professional liability include omissions, professional’s errors as well as acts of negligence. Most of these activities normally occur in the course of professionals’ practice of crafts. In the service sector, professional liability has in the recent past become most dominant in the sector’s products liability. With specific interest to UAE, professional liability seeks protection from insurance agencies in its coverage. Through such coverage, defense costs can be defrayed following claims for omissions, negligence or errors in any professional service performance.
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From the article reviewed in this case study, professional liability and its coverage massively help to protect business organizations against any form of liability. In addition to such protection, it has been realized in UAE that the coverage helps settle all the relevant defense charges associated with business operations. Since it has been realized that the main causes of professional liabilities comprise of negligence, omissions or errors, all costs related to the defense mechanisms sought for by business organizations in respect to these activities are settled.
So as to help provide for coverage against professional liability, insurance agencies have vastly incorporated a lot of effort to extend their services. In their expense, the insurance companies in UAE have extended their coverage to capture on the computer security breaching as well as privacy violations. Companies may opt to focus more of their attention to product orientation so as to escape exposure to professional liability. Apart from such an attempt, a company may as well opt for manufacturing orientation in push for safety against any form of liability.
Despite all the attempts by business organizations to evade liability-related risks, studies have proved that business organizations may still find themselves trapped in professional liability through other ways. Some of the most common ways through which a business organization may find itself professionally liable include outsourcing activities, e-commerce, as well as issues of intellectual property. With specific interest to UAE, professional liability seeks protection from insurance agencies against liability in its coverage. Through such coverage, defense costs can be defrayed following claims for omissions, negligence or errors in any professional service performance.
From the UAE actuaries reviews, it well appears that risks related to professional liability seem complex to identify and quantify. Based on these concepts, the coverage process is characterized with professional actuaries, attorneys and economists to asses the exposure levels of a given company. Since all the parties involved have professional qualifications and must be well rewarded for their services, the entire coverage process turns out to be expensive. Amongst the major problems related to such coverage there are high premiums payable on monthly basis. It is also noted that seeking for compensations may occasionally take quite a long time to the disadvantage of the organization.
Professional liability still remains to be a major problem in the service sector of the business operations amidst efforts to curb it. From varied research findings obtained in different case studies, it is realized that most business organizations in the UAE have tried to completely escape this type of liability. Even though insurance covers have been extended to cover all risks related to professional liability, it is still disadvantageous for companies to incorporate such services. Amongst the major problems related to such coverage there are high premiums payable on monthly basis. It is also noted that seeking for compensations may occasionally take quite a long time to the disadvantage of the organization. In the service sector, professional liability has in the resent past become most dominant sector’s products liability.
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