Professional Indemnity Insurance covers you for a breach of Professional Duty arising out of the conduct of your business. A Professional is considered someone with detailed and specialised knowledge which others rely on that then gives rise to a duty of care. If this duty is breached, then the affected persons can claim damages against you. Claims are for financial loss (unless in the case of medical malpractice, bodily injury) and are generally caused by a failure to act or incorrect advice or a combination of both.
Claims occur regardless of the high level of care being provided and Professional Indemnity claims can be financially devastating for the accused through disruption to business and legal fees.
Professionals can be exposed to high litigation costs regardless of whether any breach actually occurred.
Professional Indemnity is written on a “claims made” basis. This means that the policy will only respond to claims first made against the insured and notified to the insurer during the period of insurance.
Professional Indemnity Insurance is a requirement of many government and contractual obligations.
- Civil Liability resulting from the conduct of Professional Services, such as Liability under the Trade Practices Act, Libel and slander and infringement of intellectual property rights
- Costs Inclusive or Exclusive (depending on Insurer) of the Limit of Indemnity
- Automatic Reinstatement of the Sum Insured
- Lost Documents Cover
- Inquiry Costs
- Liability for Employee Dishonesty
- Attendance at Investigations
- Free Legal Consultation (limits differ between insurers)
- Consultants, Subcontractors & Agents (Vicarious Liability)
- Continuous Cover
- Advancement of Defence Costs
- Emergency Defence Costs
- Loss of Data
- Public Relations
- Statutory Liability
- Cyber Risks – Offered as an option
- Employment Practices Liability – Offered as an option
This product can be very simply placed or may require a great deal of work, which is dependent upon how the cover is expected to respond and the issues that insurers have with aspects of the insured and its operations. The key element of cover is the description of the professional business, descriptions such as Management Consultant have a perceived meaning however unless the activities described in the proposal form are accurate there is an unacceptable risk that the insurance will not respond at the time a claim is brought against you, the insured.