A history without claims or known mistakes does not remove the potential need for Professional Indemnity Insurance.

Professional Indemnity claims can arise from allegations, not only from mistakes that the insured agrees occurred.

A claim can arise even where liability is disputed #

A client or other party may allege that your professional services caused them financial loss.

The allegation may ultimately prove to be:

• Correct
• Partially correct
• Incorrect
• Unsubstantiated

Defence costs can still arise while the matter is investigated or defended.

Professional Indemnity can cover more than negligence #

Depending on the policy, cover can extend to civil liability arising from professional services and may include allegations such as:

• Negligence
• Errors or omissions
• Misleading conduct
• Breach of professional duty
• Defamation
• Intellectual property infringement

The available cover varies between occupations and insurers.

Insurance requirements and claims-made cover #

Professional Indemnity may also be required because of:

• Client contracts
• Professional registration
• Licensing requirements
• Industry association requirements
• Government contracts
• Principal contractor requirements

Professional Indemnity Insurance is commonly written on a claims-made basis. This means continuity of cover, the retroactive date and prompt notification of claims or circumstances can be important even where the professional has never previously experienced a claim.

You can read more about claims-made insurance.

Contact our team if you would like help reviewing your Professional Indemnity requirements.