Professional Indemnity Insurance Policy

What Is Professional Indemnity Insurance?

Professional Indemnity Insurance or PI for short. A typical PI policy will provide indemnity to the insured against ‘loss arising from any claim or claims for breach of duty which may be made and reported to the insurers during the policy period by reason of any neglect, error or omissions committed in the conduct of the insured’s professional business

Professional Indemnity Insurance: examples of use

Businesses that hold professional indemnity insurance policies are usually from these industries:

•    Management Consultancy
•    Accounting & Finance
•    IT companies including internet marketing, graphic design etc
•    Architecture & surveyors

Businesses may call on its professional indemnity insurance in scenarios where:

•    There is an accusation of supplying misleading or incorrect information
•    Unknowingly infringing on another person’s / body’s intellectual copyright
•    If a person provides advice or a service to another and carries that work out negligently

It is always important that you read the terms of the policy carefully.

Summary of Cover

This is a guide to the cover given by the policy. It does not cover every provision of the policy wording, but your broker will be happy to discuss it with you in more detail. You should read the policy and the additional clauses for full details of the terms and conditions.

Indemnity Limit

The indemnity limit is on an ‘any one claim’ basis (in other words no restriction as to the number of claims in a year but each claim has a maximum limit). The wording complies with the PI requirements of the Institute of Chartered Accountants and the Association of Chartered Certified Accountants. HCC International can offer up to £5 million cover for our Accountant clients.

Key Features of the cover

• Claims made against the Insured arising from any civil liability
• Claims made against the Insured arising from loss of or damage to documents
• Awards made by any Ombudsman appointed pursuant to the provisions of the Financial Services Markets Act 2000
• Defence costs (lawyers, court costs, experts etc.) are payable in addition to the Indemnity Limit Exclusions

Exclusions

• Risks that should be insured elsewhere – Employers Liability, Property, Land, Products
• North American exposure (we can normally extend the cover on request)
• Directors and Officers cover
• Seepage and Pollution unless this emanates from a breach of professional duty
• Claims arising from Asbestos and Toxic Mould
• War, Terrorism & Nuclear risks
• Acts prior to any Retroactive Date shown
• The amount of the Excess
• Claims and circumstances known at inception of cover
• Claims by Insurance Companies unless they have obtained a judgement in a court
• Claims arising from express or implied warranty or guarantee relating to investments
• Products save for adapted or amended software programs
• Trading Losses, Fines and Penalties
• Viruses