things you must know about Professional Indemnity Insurance

Who needs Professional Indemnity Insurance?

Any business which designs, advises, consults, or works in an environment where an administration error or ommission could potentially cause a loss to their clients should cover themselves by taking out professional indemnity insurance. All engineers, project managers, architects, lawyers, doctors, financial advisors, scheme administrators, brokers, valuators, assessors, surveyors, accountants, auditors and consultants should have this important cover. 

Why should you take out Professional Indemnity Insurance?

Unfortunately at some point almost everyone makes mistakes. For professionals, these mistakes can result in large losses for their clients. Without Professional Indemnity Insurance, the company would be forced to reimburse the client for the losses. Even if as a professional you did not make a mistake, the costs of proving yourself innocent in a court could cripple the company in the same way that having to reimburse losses could. Insuring against professional indemnity is a prudent way to ensure that your company survives losses it needs to reimburse because of mistakes, or costs it incurs proving that no mistake was made. 

How much does Professional Indemnity Insurance cost?

We have a large book of clients with many different insurance companies, so we will be able to find the most beneficial policy with the cheapest premiums for your business. 

Typical claims incurred on Professional Indemnity Insurance Policies

Some claims are clear cut, the company forgot to do something it was supposed to do (eg. A lawyer did not file for a section or the insurer forgot to add a car), or it made a miscalculation or error (eg engineer or architect leaves something out, administrator enters incorrect numbers, auditor overlooks miscalculations, doctor misdiagnoses problem) & this effects the outcome that the company was responsible for. In most cases, this creates a ripple effect & the extra costs & damages incurred by all separate parties because of the initial error is added up to the final claim amount. In many claims, the exact origin of the fault is argued, with all parties pointing fingers at each other. These claims tend to be made up of legal costs plus the amounts of the partial damages caused by each party. 

What other insurance should be considered along with Professional Indemnity Insurance?

Most businesses should consider Public Liability Insurance alongside their Professional Indemnity Insurance, especially if they deliver their service to their clients in person, in which case they have the potential to injure or damage their clients or their assets.

Get a Quotation 

Please note that we can only insure against professional indemnity for companies based in South Africa.

Click here to send us an e-mail requesting a quote for professional indemnity -> insurance@barrington.co.za

Contact details will be kept confidential and will not be used in any way other than as described above & will not be shared with any other parties.