Any individual, company, organization or entity providing a professional service is exposed to litigation if a third party suffers a loss as a result of negligence
Professional Indemnity is aimed at providing protection against financial loss resulting from a legal liability to a third party, which could generally arise from negligent advice. Anyone who offers services or advice in a specialised field could be held accountable at law for the advice or service to the general standards of their profession or industry.
Often referred to as PI insurance, professional indemnity provides protection to ensure the financial wellbeing, safety and even survival of the insured business in the aftermath of negligence and damages claims brought by third parties.
Directors & Officers Liability:
As a company director or officer, when things go wrong there’s so much more than simply your position on the line. The Companies Act imposes personal liability for breach of duty, which means anyone can sue a company director or officer in their personal capacity for actual or alleged breach of fiduciary duties. You may be held personally, jointly and severally liable for any loss, damages or costs sustained by your company because of your decisions. This means that your personal assets can be at risk!
Who Should Take Out This Cover?
Anyone who gives professional advice, services, recommendations or reports! Any business that provides a professional service to customers should consider investing in this type of policy, especially if a claim of negligence is made against a business without the means or the funds to defend themselves in a legal proceeding. Consumers have become far more knowledgeable about how they can deal with poor service, and if a claim is made on the premise that the business did not provide a sufficient service or correct information, the customer has the right to sue the business.
Examples Of Claim:
Ensure against mistakes. An Architect you are currently working with provides the incorrect measurements to a contracting company. This results in the project costing the client more in the redesigning of the building’s structure.
An eager estate agent gives out the house keys to a potential buyer without carrying out their proper checks. The potential buyer turns out to be a con man who strips the house of all its valuables.
An acoustic consultant failed to adequately design the acoustics of a concert hall. As a result of the negligent design, when the concert hall was fully constructed, those patrons sitting at the rear of the auditorium could barely hear what was happening on the stage.
Your company is insured against these claims