Professional Indemnity is a form of protection for the insured against legal liabilities that may arise by reason of any neglect, error or omission committed in a professional capacity by the person insured or by any partner, director or person who may be in the insured's employment. However, the act leading to the claim must be committed within the period stated on the policy.
The policy covers all costs of legal charges and expenses required to prosecute a case. Though the claim must be contested by the insured at the request of the insurer.
WHO REQUIRES THIS COVER?
Professionals, lawyers, doctors, Insurance Brokers, Accountants, Surveyors, Engineers, Architects, etc.
It is necessary for a proposal form to be filled to elucidate the following facts:-
• The insured – Corporate body, partnership or individual
• The professional capacity in which the insured is acting: director Partner, individual
• The Predecessor in business – if there has been a change in name, merger or acquisition
• Period of insurance
• Limit of indemnity
• The total number of employees