Professional Indemnity Insurance – Product Disclosure Sheet (ENG/ BM)
Professional Indemnity Insurance
Anyone providing professional services has a duty to ensure that both their clients and third parties do not suffer any financial losses as a result of the services provided.
In the event that a service provider causes a loss, he or she is liable in law to compensate the person/s who have suffered a loss.
Normally the victim would have to establish negligence on the part of the service provider in order to succeed in a claim.
Professional Indemnity Insurance is a solution for service providers to transfer the risk of being sued for a mistake that they might make.
Traditionally professionals like Architects, Engineers, Accountants, Doctors, Lawyers, Surveyors and Valuers often purchase Professional Indemnity policies.
Professional Indemnity policies like most other liability policies is written on a ‘Claims-Made Basis’.
Scope of Cover
Unlike other general liability policies, Professional Indemnity policy normally provides indemnity to the Insured against financial losses only arising from the provision of professional services. Indemnity for defence costs and expenses is also provided.
However, in certain circumstances the policy will cover losses arising from Bodily Injury and Property Damage. For instance the Engineers' Professional Indemnity Policy will only respond to claims arising from Bodily Injury or Property Damage as a result of negligence on the Engineers part in discharging their Professional Services.
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