Professional Indemnity

Professional Indemnity

Protecting you when mistakes happen.

A Professional Indemnity insurance policy is designed to offer protection for liabilities incurred as a result of negligent acts, errors, or omissions in the course of a business’ professional service. 

A policy will cover the insured for any legal defence costs as well as any final settlement or compensation award.

Therefore, should a third party suffer financial loss due to a company’s professional negligence; this policy can offer vital protection. 

What does Professional Indemnity insurance cover?

Cover under Professional Indemnity insurance includes economic and financial loss but can also encompass bodily injury and property damage for professions such as architects.  

However, please note that general liability insurance normally covers the bodily injury and property damage risk for the vast majority of professions.

What will A Professional Indemnity insurance policy do?

Professional Indemnity insurance is almost always written on a Claims Made basis, meaning that cover is triggered when a claim is made against the insured during the policy period, regardless of when the wrongful act that gave rise to the claim took place, subject to the retroactive date.  

Furthermore, you must carefully consider whether defence costs are included in addition or included within the policy limits due to the potential of legal defence costs. 

The policy limit can be in the annual aggregate or on an ‘any one claim’ basis.

What are common policy extensions?

Common extensions can include cover beyond the date of cancellation when a firm is wound up, breach of warranty of authority, investigations costs, libel and slander and loss of documents.

What are common policy exclusions?

Common exclusions in Professional Indemnity insurance include bodily injury, property damage, fines & penalties and intentional/dishonest acts.  However, please note that this list is not exhaustive and the individual policy must be consulted.

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