Professional indemnity insurance can be provided as part of a combined liability insurance arrangement, or more commonly as an individual policy. It is not a legal requirement to carry the cover, however, certain trade and government bodies require their members or those they regulate to purchase the insurance with minimum limits of indemnity specified. Similarly, certain contracts will require those tendering to evidence the cover.
What is covered? The legal liability to compensate third parties who have sustained financial loss, property damage or in some cases bodily injury due to the provision of advice, design or specification for a fee.
When arranging cover for our clients, due consideration is given to:
- Industry specific wordings
- Professions including architects, estate agents, design and construction, information technology, public relations, flood defence contractors, solicitors and accountants require industry approved wordings
- Retroactive date
- Claims will not be covered if the negligent act occurs prior to the retroactive date. For this reason, the date should mirror the date you began trading. Insurers will attempt to include numerous retroactive dates to reflect changes in business description or increase in policy limits
- Subrogation waivers
- Subrogation waivers for individual(s), companies or a group of sub contractors can be arranged and is required in circumstances where sub contractors employed by you do not have their own insurances
- Territorial limits
- Standard policy wordings restrict cover to Great Britain unless amended. In many instances local laws prohibit insurance cover arranged outside their country and care needs to be taken when working aborad. USA and Canada exposures present the most problems to insurers given the high claims awards and punitive damages that are commonplace. We can guide you through the regulations and arrange cover to accommodate trade to most parts of the world, including USA and Canada
- Aggregate or any one claim
- Limits of indemnity start from £250,000 “in the aggregate” ie. In the period of insurance. Contracts requiring cover for higher limits “each and every claim” are becoming the norm and we can advise on the most cost effective way of dealing with these requirements
- Collateral warranties
- Another contractual requirement increasing in its use. Insurers vary considerably in their attitude to collateral warranties and for certain trades this plays a major part in dictating where clients insurances are placed. We have the knowledge and experience to check collateral warranty requirements and ensure the policy responds correctly
- Acquired liabilities
- Particularly important when dealing with changes in ownership, partners and/or merger and acquisition activity. Cover can be extended to include previous work undertaken by associated companies
Castlemead Insurance Brokers have the knowledge, experience and market connections required to competitively place the required cover for your business.