Professional Indemnity Insurance
What is professional indemnity insurance?
The professional indemnity insurance policy protects the policyholder in respect of claims made against it for it’s legal liability for losses arising from professional services provided, This would generally arise through a breach of professional duty.
Who needs professional indemnity insurance?
Those involved in the professions and occupations providing advisory and consultancy services are increasingly open to claims in respect of financial loss from third parties in respect of professional negligence or breach of professional duty and the economic loss in settling these matters, even in legal defence costs alone, can impose a high financial burden upon the professional. Anyone that provides professional services for a fee as part of their business activities should consider professional indemnity insurance. At one time professional indemnity was an insurance largely taken out by the established professions, lawyers, accountants, insurance brokers but the increase in consultancy or the wider reliance of utilising the service of outside professionals has seen an significant increase in both the number of variety of professionals acting on a consultancy or advisory basis.
How much does professional indemnity insurance cost?
The cost of professional indemnity insurance for the majority of occupations and professions has reduced in recent years. .As the need for professional indemnity insurance has increased, so has the availability and affordability of the cover and it is now possible to arrange an appropriate professional indemnity insurance policy for a relatively low annual premium and a fraction of the cost just a few years ago.
What are the limits of indemnity under a professional indemnity insurance policy?
The limit of indemnity under a professional indemnity insurance policy is the maximum liability of the insurer in respect of an claim, or series of claims during the policy period.
What is a claims made basis under professional indemnity insurance?
Unlike other forms of liability insurance, professional indemnity policies respond to claims made against the policyholder during the period of insurance, not to claims that occur during the policy period. This can have a significant effect on your insurance buying pattern for professional indemnity insurance as if a policy is slowed to lapse or is cancelled there is no further cover provided by the policy if a claim is notified after the policy has expired.
Does my professional indemnity insurance protect me in respect of previous work undertaken?
This will depend upon the retroactive date that is contained within your policy. In general terms this will be dated to the inception date of your first professional indemnity insurance policy or for new businesses to the start date of the business.
What is professional indemnity run off insurance?
It is the “claims made” basis of most professional indemnity insurance policies that makes run off professional indemnity insurance vital for many businesses and professionals once they cease trading or perhaps sell their business. If you are no longer trading and do not have current professional indemnity insurance in force then you are potentially exposed to claims being made against you in respect of work undertaken previously. Run off professional indemnity insurance provides you with an ongoing protection against such claims and is available at a fraction of the cost of a standard policy. Run off policies are normally purchased for a year or multiple years at the same time.
How do I buy professional indemnity insurance?
As experts in the arrangement of professional liability insurance, we have access to a wide range of facilities and schemes tailored to meet the need of a broad range of professions and occupations and along with providing fast and easy access to low cost quotes, our professional indemnity insurance specialists are able to advise you on even the most complex aspects of cover. You can apply on-line or call us to discuss your requirements for professional indemnity insurance with one of our specialist professional liability insurance brokers.