• WHO NEEDS PROFESSIONAL INDEMNITY INSURANCE
  • WHAT THE POLICY COVERS
  • WHAT THE POLICY DOES NOT GENERALLY COVER
  • THE LIMIT OF INDEMNITY AND THE PREMIUM REQUIRED
  • OTHER OPTIONAL EXTENSION AVAILABLE

The Professional Indemnity Policy is appropriate for all types of individuals and businesses providing advice, design, specifications or other professional services which are relied upon and acted upon by another-and for which the individual or business can be held liable at law.

The Policy will cover your liability for acts of neglect, error, or omission committed in good faith including:

  • Dishonest or fraudulent acts of an employee for which the Policyholder is liable, provided the Policyholder or the person claiming indemnity has neither committed nor condoned such employee’s act or omission. (There would be no indemnity to the dishonest person himself.)
  • Libel and slander
  • Reasonable costs of reconstituting documents lost or damaged while in transit or in the custody of the policyholder or any other person entrusted with the same.

The Policy does not generally cover:

  • liability to employees
  • liability for any debt incurred
  • liability for death or bodily injury unless arising out of advice, design or specification, or the omission to perform a professional duty
  • liability arising out of advice, design or specification where the Policyholder contracts to (a) manufacture, construct or install and/or (b) supply materials or equipment
  • liability arising out of circumstances which at inception are known to the Policyholder and are likely to give rise to a claim
  • any claim for penalties or liquidated damages.

The Limit of Indemnity is the maximum amount the insurer will pay for damages, and all other costs and expenses incurred (with the insurer’s consent) arising out of all claims occurring during the period of insurance. As each risk is underwritten on its own facts, the premium is quoted upon receipt of a fully completed proposal form.

Optional extension available is the liability incurred by partners in the business for claims arising out of a previous business or practice in the same profession.