This type of insurance provides financial protection for your legal liability in respect of any claim for defective advice which you have given for a fee in a professional capacity or under a contract.
This cover will be taken out by firms of solicitors, accountants, architects, surveyors and insurance brokers and other professional organisations. The medical profession including dentists will also need cover which is usually known as medical malpractice insurance. Other businesses involved in physiotherapy, hairdressers carrying out treatment such as colouring, and veterinary surgeons will all require this form of cover.
Many businesses in the contracting trade are now required under contract to arrange this cover to provide protection for their customers.
Professional indemnity policies are arranged on a ‘Claims Made Basis’ which means that the policy that is in force at the time a claim is made is the one which will deal with the loss. This is different to the employer’s and public liability policy wordings and we will be happy to discuss the implications of this with you.
If you are in any doubt as to whether you need this cover, contact one of our expert team members for advice.