“Such covers provide comprehensive protection for the firms’ assets against claims for financial losses, injury or damage arising from certain acts, errors or omissions in the performance of the professional services,” Abdul Rahman Al-Baker, Executive Director of Financial Institutions Supervision, Central Bank of Bahrain (CBB), in his keynote address at region’s first Professional Liability Insurance Forum said.
“The CBB is delighted to patronize this important event and consider it as an opportunity to build awareness about the value of liability insurance and of its products. The forum provides a platform to discuss the issues related to the development of liability insurance market and to address the emerging needs of liability insurance in the region. It also provides an opportunity to explore the importance of professional liability insurance and its role in business continuity and the protection of a company’s financial and human capital,” he said.
“It It is required by professionals who have expertise in a specific area because the general liability insurance policies do not offer protection against claims arising out of business or professional practices such as negligence, malpractice or misrepresentation. Some charities and other nonprofits/NGOs are also professional-liability insured,” Al Baker said.
“The recent development in the global and local markets, have demonstrated the importance of Professional Liability insurance policies and the protection it can provide through different products, more specifically the Directors and Officers Liability insurance,” he added.
“The CBB has elaborate rules on Professional Indemnity coverage for insurance brokers, insurance consultants, and investment firm licensees. The rules ensure the necessary maintenance of coverage acceptable to the CBB and specify a minimum limit of indemnity for different professionals,” he said.
“There is a lot of potential for insurance firms to provide and strengthen the professional liability insurance products and to cater them to the needs and requirements of the different industries,” he said.
“I am very pleased with the initiative taken by GAIF in collaboration with the BIA to hold this important event and I hope that such collaboration will continue in future, and will benefit not just the organizations in Bahrain but the wider region,” Al Baker said.