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Professional Indemnity Insurance
Why
Professional Indemnity protects the business against
liability for the financial losses suffered by clients
and others as a result of breach of professional duty.
A professional duty of care is established if advice,
design or specification of materials fit for purpose
is provided whether for a fee or otherwise. For example
Design and Build conditions formalize these obligations.
What
The policy includes the legal cost of defending the
allegations and so protects the reputation and assets
of the firm . In addition if the claim is proved and
there has been a breach of duty then the policy will
compensate the third party for their resulting financial
losses for which the policy holder is legally responsible.
Basis of Cover
Professional Indemnity is arranged on a " claims
made " basis which means that it is the Policy
in force at the time when the claim or allegation is
made which manages the claim. Particular attention should
be taken when arranging cover to clarify whether or
not it will encompass past work undertaken. In addition
care should be taken to ensure Cover continues beyond
completion of the contract. Design Liabilities are onerous
and extend many years beyond completion.
Claims
Examples of claims include:
- the incorrect specification of flooring materials
necessitating the closure of a factory whilst the
floor is removed and replaced
- Error in Design resulting in failure of the product
and loss of use
- Allegation that there is an error in the issue of
a NICEIC certifcates, etc.
Cost
Insurers require a fully completed application form
prior to quotation . This seeks to identify the experience
of key personnel , Turnover split and the types and
extent of design responsibilities , the types of project
undertaken, limits of indemnity , trading history and
claims / circumstances declarations . Please e mail
for a form.
For further information and a quotation please e
mail us or telephone on 01634 862525
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