This covers the insured from losses that may result from professional malpractice, advice, services or designs to a client. It provides cover for the legal costs and expenses in defending the claim, as well as compensation payable to your client to rectify the mistake.
Regardless of how many years experience your firm may have, there is always the possibility you (or one of your team) could make a mistake.
Professional indemnity insurance covers against a wide range of scenarios which including:
- Professional negligence (i.e. making a mistake in a piece of work for a client)
- Loss of documents or data
- Unintentional breach of copyright and/or confidentiality
- Defamation and libel
- Loss of goods or money (your own or for which you are responsible)
Scope of cover:
- Court judgments/awards
- Defence costs
- Fees and expenses
- Loss of documents
Cover is available for, among others:
a) Lawyers
b) Architects
c) Engineers
d) Accountants/auditors
e) Trustees (Liability)
f) Medical (general practitioners, nurses, dentists, physiotherapists)
The insured will choose a limit of cover in line with the nature of projects/contracts that they normally undertake or the size of the pension scheme funds that they manage.