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professional indemnity insuance

Professional Indemnity Insurance

This specialised area of insurance covers liability arising from the ‘professional services’ provided by a business.  

 

Importantly, as the nature of modern business continues to change rapidly it’s no longer only for traditional occupations such as Engineers, Accountants, Doctors, Lawyers, Architects and Insurance Brokers. Professional Indemnity should be a key consideration for advice – from beauty therapists, book-keepers and building certifiers, to colour consultants and interior designers.  If you hold a qualification and you provide advice, certification, testing or formals on which other parties depend, then chances are there is a Professional Indemnity exposure.
 
Arranging the correct type and level of Professional Indemnity cover can be complex. As such it requires specialist assistance from an Adviser who can help you navigate a wide range of considerations including the following:
 

  • Professional Indemnity is a ‘Claims Made Policy’ – this means your policy only covers you for claims made against you during the period of insurance, not before or after.

  • Wordings generally fall into three categories:

    • Negligence;

    • Acts, Errors or Omissions; and

    • Civil Liability.

  • But what do these actually mean, and which is best for your business?

  • Is the sum insured inclusive or exclusive of defence costs?

  • What is reinstatement and how many reinstatements does the wording cover?

  • Is there navigation and/or jurisdictional restrictions to your cover?

  • What is a retroactive date and what are the impacts on the cover?

  • Does cover include advancement of defence costs? Why is this important?

  • Are joint ventures covered, and if so, to what extent?

  • What is the impact of contracts on the cover?

  • Does cover extend to liability from contractors and sub-contractors? Does the scope of their activities impact if they are covered?

  • What is a notifiable event and when should notification be made to the insurer? What is the impact if this is not made?

  • What is continuous cover and why is it important?

  • What is run-off cover and when is it needed?

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