Q

What does a Professional Indemnity Policy Cover?


 

ANS

Professional Indemnity insurance provides cover for claims against the Insured for actual or alleged negligent acts, errors or omissions or breaches of the Insured's professional Duties, or its mistakes in providing a professional service.

Back to the top

 

 


Q

What limit of indemnity will my client need?


 

ANS

The amount of cover needed depends on the type of services provided by the insured, what it perceives its maximum exposure to be or if it has been required to maintain minimum levels of cover for a specific contract.

Back to the top

 

 


Q

What if the Company's turnover substantially increases over the Policy period?


 

ANS

A professional indemnity policy is underwritten based on the turnover or fee income generated from the preceding twelve months. As such should this amount substantially increase during the policy period this will be taken into consideration upon renewal. It may be worthwhile contacting the Insurer to inform them of the increase during the policy period as this would be considered a material fact.

Back to the top

 

 


Q

Does the Policy cover predecessor companies?


 

ANS

Yes. The definition of Insured is broad in scope and includes predecessor's in business provided the claim is made during the policy period and the wrongful act did not occur prior to any applicable retroactive date.

Back to the top

 

 


Q

What is a retroactive date?


 

ANS

The retroactive date is the date following which any wrongful acts committed by the insured will be covered by the policy subject to full policy terms and conditions.

Back to the top

 

 


Q

If there are several companies under the same ownership can they all be covered under one policy?


 

ANS

As long as all of the activities and turnover of the applicant and the associated companies are provided when the Insurer is quoting then the policy can include cover for all the companies (unless specified). If you are unsure whether an activity is included it is always best to ask.

Back to the top