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WHO NEEDS PROFESSIONAL INDEMNITY INSURANCE
·
WHAT THE POLICY COVERS
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WHAT THE POLICY DOES NOT GENERALLY COVER
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THE LIMIT OF INDEMNITY AND THE PREMIUM REQUIRED
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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:
a)
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.)
b)
Libel and slander
c)
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:
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liability to employees
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liability for any debt incurred
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liability for death or bodily injury unless arising out
of advice, design or specification, or the omission to perform
a professional duty
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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
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liability arising out of circumstances which at
inception are known to the Policyholder and are likely to give
rise to a claim
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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.
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