Insurance

A Few Vital Terms you Might come across in Professional Indemnity Insurance

Professional Indemnity Insurance

Not all would be comfortable understanding professional indemnity insurance. It could be a complicated arena for most people. Rest assured that policy wordings could vary from one insurer to another. Various professionals have various requirements. As a result, specialist wordings would be required for most industries inclusive of architects, surveying, construction, media, marketing, IT, and more.

A majority of professional bodies would need insurance for their members. They would require a professional indemnity insurance uae written on an approved working. Two good examples of such insurance would be Solicitors and Accountants PI.

When considering professional indemnity insurance, you might come across a few vital terms. Some of these terms have been listed below.

  • Claims made

Professional indemnity insurance policies have been written based on claims made. It implies that the insurance policy placed on the date of the claim has been made against you, they would respond to the claim by the time you carried out the work.

  • Retroactive date

Rest assured that your professional indemnity insurance policy has been written based on the claims made. Your existing insurance company would be liable for the claims made presently for any work carried out previously. It would be worth mentioning here that the retroactive date on the policy would fix the date from which they would become potentially liable. Any claim made against you for work carried out before the retroactive date would not be covered.

  • Civil liability or negligence

Most policies would only indemnify you for the claim purchased against you for an act of negligence. However, others would be written based on a considerably wider civil liability. It would cover you from various kinds of claims inclusive of the following –

  • Damages to or loss of documents
  • Unintentional violation of intellectual property rights
  • Unintentional breach of confidentiality
  • Slander or libel
  • Dishonesty of employees
  • Breach of professional duty

These aspects would be written on professional indemnity insurance.

  • The limit of indemnity

The limit of indemnity would be the maximum that an insurance company pays. A good instance would be the professional indemnity insurance terms making it difficult to compare quotations. As a result, you would be required to know if the limit of indemnity applies to any one claim or taken together.

  • The excess

It could vary largely from one policy to another. Most insurers would apply it to the entire claim inclusive of the defense costs. However, others would only apply it to awards. It implies that you do not require funding the initial defense costs independently.