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Professional Insurance Across the Globe

Professional indemnity insurance can protect some professionals from losing mo

While domestic corporations may not deal much with professional indemnity insurance (PII) policies, those with operations in other countries should be aware of the new regulations that address PII policies.

In Italy, lawmakers recently issued a new decree requiring all professionals to acquire PII coverage and alert their clients that they have done so, according to international law firm DLA Piper. This provision will extend to notaries, accountants, lawyers, architects, and "all those whose activity is governed by a professional body." Professionals have until August 2012 before the law goes live, the law firm says.

Those working in the U.K. may be wise to also take out PI insurance, according to the London Evening Standard.

The main goal of PII is to cover any "alleged performance failure by the service provider, a financial loss as a result of their actions or an error in the product or service," the source notes. However, the insurance will not protect a company from criminal prosecution.

Stateside, many corporations choose to get the equivalent of PII - errors and omissions (E&O) policies - to add to their liability insurance coverage. E&O insurance can even extend to how a corporation stores its clients' sensitive information. According to Property Casualty 360, in order to get coverage under this category, "producers must have a concrete plan in place to protect client data."