Professionals and professional service organisations perform in an environment of increased responsibility and accountability.
If your organisation, employee or a party you may be legally or contractually responsible for, fails to exercise a competent degree of skill and care in the performance of their duties, you can be held responsible. With litigation becoming an increasingly common means of settling disputes, professionals are being held more accountable for their advice and actions and any losses suffered as a consequence.
Liability may arise from breach of contract or in tort for damages arising from negligence.
Claims, whether spurious or not, often require protracted legal action to defend which can be costly, regardless of the outcome. The burden of litigation ultimately impacts on the capital of the organisation and in certain circumstances may place the organisation under extreme financial pressure.
Professional Indemnity insurance can help protect you and your organisation against the financial strain of litigation. It covers your legal liability to compensate third parties for losses caused by a breach of professional duty or negligence in the performance of your professional services.
Cover can extend to include your legal liability to third parties, which emanates from other parties contracted to you.
Typical purchasers of Professional Indemnity include:
Policies provide a broad scope of coverage. Many policy extensions are either included automatically, or are readily available as “add ons” for an additional premium.
However, policies do differ significantly in scope of cover between insurers. Therefore, it is important that you consult with a specialist insurance broker before making any decisions on which policy best suits your particular requirements.
Some of the risks that can be covered by a Professional Indemnity policy include:
Policies can be tailored to cover exposure from liabilities incurred anywhere in the world – including USA.