Professional Indemnity, or P.I. Insurance, provides protection against negligent acts, error or omission or alleged acts from advice or services provided.

Cover provides for claims of business injury which means any financial loss they may suffer as a result of:

• Any negligent act, error or omission;

• Implied statutory terms (e.g. Sale of Goods Act, Sale of Goods and Services Act);

• Unintentional infringement of intellectual property rights;

• Loss of documentation/data;

• Unintentional libel, slander, defamation;

• Unintentional breach of confidence, confidential duty or misuse of information, trade mark;

Cover is provided by electing a limit of indemnity and they can be:

Any one claim	which is the wide cover;
In the aggregate	i.e. any number of claims up to the limit of indemnity

 

It is important to note:

• All professional indemnity policies provide cover on a "claim made" basis, i.e., the claim attaches to the policy in force at the time the claim is made and not to the policy that was in force at the time the work was carried out.

• Your potential liability could be up to 15 years after work has been completed in certain circumstances and cover would have to be renewed annually to provide protection.

• All professional indemnity policies have a "retroactive date". This indicates when cover is applicable from. You should always ensure that the retroactive date represents the date you started to trade.

• Generally, all professional indemnity premiums are "in full" or "minimum and deposit" which means that should you wish to cancel a policy mid term there will be no return of premium paid.

• Most insurers require a completed proposal form before providing quotations as well as CV's of the main employees.