While PI insurance still covers "traditional" professionals, such as doctors, solicitors, accountants and architects, a whole new market of professionals now need to consider PI cover.
Professional indemnity insurance, also referred to as errors and omissions insurance, protects professional personnel against negligence claims made by a client or third-party. Professionals who commonly turn to this type of liability insurance for cover include architects, home inspectors, solicitors, estate agents and accountants – among others. Protect yourself with professional indemnity insurance.
The need for professional indemnity cover developed due to typical public indemnity insurance policies only responding to bodily injury, property damage, personal injury or an advertising injury claim. Because professionals such as architects, solicitors, accountants, estate agents, technology consultants and others can cause claims without bodily injury, property damage, personal injury or an advertising injury claim, additional cover is needed to fill this gap.
Common claims made on these policies include negligence, misrepresentation, violation of good faith and fair dealing, and inaccurate advice. For example, if a Web design platform fails to perform properly, it would not cause bodily injury, property damage or advertising injuries. Because of this, the public liability policy would not be triggered. But because the Web design platform not performing correctly could directly cause financial losses, and may be attributed to a misrepresentation of the platform’s capabilities, the professional indemnity cover would be triggered.
When buying professional indemnity cover, there are considerations that will help you determine exactly what you need.
Establish a high standard for product and service quality control at your organisation.
Keep all company records up-to-date and accurate.
Train employees thoroughly and properly.
Ask Kennett Insurance Brokers for safety and compliance information.
Contact Kennett Insurance Brokers to learn how PI insurance fits into your total risk management programme.