Professional Indemnity Insurance can cover certain claims arising from the professional services provided by a Consultant.

A client or another party may allege that advice, recommendations, reports or other services were incorrect, incomplete or failed to meet the required professional standard.

What types of claims can arise? #

Examples can include allegations involving:

• Incorrect professional advice.
• Errors in reports or documentation.
• Inaccurate recommendations.
• Failure to identify an important issue.
• Negligent project advice.
• Misrepresentation.
• Breach of professional duty.
• Failure to deliver services as agreed.

The actual cover depends on the policy wording and the professional services disclosed to the insurer.

What can the policy pay? #

Depending on the claim and policy, Professional Indemnity Insurance can respond to:

• Legal defence costs.
• Expert and investigation costs.
• Settlements.
• Court-awarded damages.
• Other insured costs associated with defending or resolving a claim.

Defence costs may sit inside or outside the policy limit depending on the policy.

Does Professional Indemnity cover every business dispute? #

No.

Professional Indemnity Insurance is designed around professional liability rather than every disagreement a business may have with a customer or supplier.

The circumstances and policy wording need to be considered for each claim.