Professional Indemnity Insurance
Insurance provides cover from a range of potential threats, such as claims for alleged negligence or breach of duty arising from an act, error or omission in the performance of professional services.
Why do I need professional Indemnity insurance?
If your profession provides any advice, writes reports or services in a capacity as a consultant, engineer, inspector, IT professional or similar professional indemnity insurance is a must. There are occasions where the professional may unintentionally omit information, breach privacy or confidentiality or provide the wrong advice to clients which may result in a financial loss that you are held liable for.
Professional Indemnity protects you against significant exposure to costs associated with the claim including the financial loss, legal defence and investigation costs. Typically, an excess is payable by you at the time a claim is lodged with the insurer.
Both professional indemnity and public liability are designed to protect your business. They key difference is that public liability will not cover the costs arising from professional services or advice provided by you.
Professional Indemnity Insurance
Insurance provides cover from a range of potential threats, such as claims for alleged negligence or breach of duty arising from an act, error or omission in the performance of professional services.
Why do I need professional Indemnity insurance?
If your profession provides any advice, writes reports or services in a capacity as a consultant, engineer, inspector, IT professional or similar professional indemnity insurance is a must. There are occasions where the professional may unintentionally omit information, breach privacy or confidentiality or provide the wrong advice to clients which may result in a financial loss that you are held liable for.
Professional Indemnity protects you against significant exposure to costs associated with the claim including the financial loss, legal defence and investigation costs. Typically, an excess is payable by you at the time a claim is lodged with the insurer.
Both professional indemnity and public liability are designed to protect your business. They key difference is that public liability will not cover the costs arising from professional services or advice provided by you.
Professional Indemnity insurance is issued on a ‘claims made’ basis. This means that the policy responds to a claims first made against the insured during the current policy period and notified to the insurer during that policy period, providing that the insured was not aware of any prior know circumstances that may lead to a claim.
Professional Indemnity coverage may be limited by a retroactive date. Where the retroactive cover provided by the professional indemnity, then the policy will not cover any claims arising from actual or alleged act, error, omission or conduct occurring prior to the retroactive date.
As with all policies you must comply with your duty of disclosure. Failure to comply with your duty of disclosure may be entitle the insurer to reduce their liability under the policy in respect of a claim or the may cancel the policy. It is vital to ensure that all entities including comprising the insured including management staff agree that all matters have been disclosed.