Regardless of the guilt or innocence of the professional person, the time lost and cost of legal defence can be financially devastating. In many cases, defence costs can actually outweigh the actual damages awarded.
Professional Indemnity Insurance covers financial losses incurred by a third party as a result of any errors or omissions in the advice, design or specification that you provide to them.
If you offer any form of professional advice, design or specification, you need to seriously consider the potential for financial loss for your clients as a result of any errors or omissions in the advice.
Claims in this area are by their nature usually for substantial amounts, therefore the level of cover needs to be realistic. Good risk management including review of your employees, procedures and clearly defining each party’s contractual responsibilities can substantially reduce your exposure to a claim.
- Advice based services provided
- Design or specification services
- Levels of potential financial losses to your clients
- Procedural safeguards
- Level of insurance excess
- Employee competency
- Defined responsibilities