Professional Indemnity Insurance
Professional Pain!
Historically only accountants, engineers, architects, surveyors, solicitors, doctors and the like
were considered to be ‘professionals’, but today, the term can be applied to almost anyone
claiming specialist knowledge or expertise and offering a related service.
A professional may trade as a sole practitioner, in a partnership, or as a company, trade
association, charity or other corporate entity. The services offered can be paid or unpaid.
Duty of Care
Professionals owe a duty of care to anybody who might reasonably rely upon the service or
advice they have provided. In today’s commercial world the consumers of professional services
are looking to professionals for increasing standards of service. These consumers are more
and more likely to resort to litigation when it appears that these standards have not been met.
All service providers have legal liabilities to their clients and, in many cases, third parties.
When action is taken to enforce these legal liabilities progressively more ‘professionals’ rely
upon their professional indemnity insurer for advice, assistance and security.
Claims Made Basis
As is usual with professional indemnity insurance, insurers offer cover on a “claims made”
basis. This means that, subject to the Assured’s compliance with policy notification provisions,
insurers will provide cover for any third party claim first made against the assured within the
period of insurance. Whilst claims made cover is offered regardless of when the act, error or
omission that occasioned the claim took place, it is usual for the policy to be made subject
to a “retro date”.
This means that insurers will not provide cover for claims based upon acts, errors or omissions
that occurred before this date. The “retro date” will vary according to the particular
circumstances of the assured.
The Solution
We are happy to discuss your individual requirements or alternatively, click bellow to request a professional indemnity insurance proposal form, complete and return this to our office ASAP
for a quotation.
