Professional Indemnity Insurance

This policy is designed for professionals and firms which covers them in the event of and in errors of judgement made during judgment professional cover such things as professional negligence, errors or omissions, breaches of professional duty or conduct, and civil liabilities. This insurance enables professionals to work without the fear that they may be sued by a client or a third party for injury or damage that may be caused to them as a result of the professional services given. In short, it allows professionals to carry out their work with greater confidence and peace of mind.

Need For Professional Indemnity Insurance

Regardless of the experience that a firm may have, there is always a possibility that Professionals or their team members could make a mistake. Professional Indemnity Insurance may be required by Professionals if they

Handle Data belonging to a client or business: eg, a Chartered Accountant

  • Are responsible for client’s intellectual property: eg, an IT Firm
  • Advise or guide clients: eg, a Structural or Design Engineer, or a Legal Advisor.
  • Provide professional services, eg: a doctor or a Surgeon

No matter how large or small an entity providing the professional service, without a professional indemnity covers the financial position of the service provider could become vulnerable if a claim is brought against them.

 

Professional indemnity insurance has (but are not limited):

  • Doctors and medical practitioners – who cover registered practitioners like cardiologists, physicians, surgeons, pathologists, etc
  • Medical assessments – which includes legal liability which comes under the medical establishments such as hospitals and nursing homes, as of any error or omission committed by any named professional or assistants hanged by the medical establishment.
  • Lawyers, solicitors, advocates, and counsels.
  • CA’s, financial accountants, and management consultants.
  • Business and Management consultants like training consultants, education consultants, and marketing consultants.
  • IT pro including IT consultants, contractors, programmers, and developers.
  • Technical engineers, contractors including project engineers, CAD designers, and offshore oil and gas technicians.
  • Recruitment agencies and consultants
  • Designers such as graphic designers, web designers, and interior designers
  • Fitness pro including dance teachers, personal trainers, karate trainers, and yoga instructors.
  • Teachers, mentors, and tutors including private tutors

What doesn’t professional indemnity insurance cover?

PI insurance doesn’t cover all circumstances, you’ll also have a few scenarios where you may not be covered.

You should go thoroughly with your policy terms and conditions for full details, but usually, PI insurance doesn’t cover the following:

  • Penalties and Fines
  • Any loss or damage to your business that’s caused by pollution or asbestos
  • Injury or harm to an employee
  • Damage or loss in a joint venture (only your products/services would be compensated by your insurance, and not of a partner)

Professional Indemnity Policy Coverages Insuring Clause:

Breach of Professional Duties Insurers agrees to indemnify the Insured against any Claim for civil liability arising from a breach of professional duty while in the conduct of the Professional Business first made against the Insured during the Period of Insurance. It covers Professional Liability arising from:

  • failure to perform a professional service

    • Loss of document
    • Defamation
    • Joint Ventures
    • Vicarious Liability cover
    • Defence costs

General Exclusions:

  • Criminal Act
  • Intentional and Willful Acts
  • Loss of goodwill and loss of market
  • Delay in delivery
  • Criminal, Malicious and dishonest acts except covered as an extension.
  • Insolvency and Bankruptcy
  • Claim of group company/associate company
  • Antitrust claims
  • Known losses and pending litigations
  • Long-term policy ( policy of more than 12 months )
  • Fines & Penalties & Punitive damages
  • Governmental & Regulatory Orders.
  • Policies other than claims made & unlimited liability