Professional Indemnity

Professional indemnity insurance indemnifies the insured professional against any loss arising out of the professional’s alleged negligent act, error or omission which results in a loss suffered by his/her client or by a third party.

Anyone who, for the purposes of generating revenue, provides advice and/or services of a skilful character according to an established discipline would generally be regarded as a ‘professional’. This definition includes but is not limited to attorneys, engineers, accountants, IT specialists and financial intermediaries.

A professional is represented as having a special skill, which can be relied upon by his/her client. Consequently, our common law requires that such professionals exercise the required skill to an appropriate level of expertise. Any financial loss, injury or damage arising from a mistake or failure by the professional to conduct him/herself accordingly may expose the professional to legal action by the aggrieved person. It is principally for this reason that this cover is necessary.

Professional Indemnity insurance essentially provides the professional insured with indemnity in respect of legal liability arising out of the practice of the profession. This normally occurs following the result of negligent acts, errors or omissions. And unlike the standard public liability policy, the damages that trigger the policy need not be tangible.

The cover provided will include all legal costs to defend the professional in any legal action or mere dispute and will further incorporate appropriate extensions to align with the exposure and needs of the professional within the industry sectors that he operates.