Insurance Journal (1st Quarter 2022)

Guest Contribution
Nasir Siddique
ACII (UK), CPCU (USA), MBA (I & RM)
AGM / Team Lead (Underwriting)
IGI General Insurance Limited
Professional
Indemnity
Insurance
If you are alleged to have provided
inadequate advice, services or
designs to a client, professional
indemnity insurance provides cover
for the legal costs and expenses in
defending the claim, as well as
compensation payable to your
client to rectify the mistake.
Regardless of how many years'
experience your firm may have,
there is always the possibility you
(or one of your team) could make a
mistake. But what does this
i n s u r a n c e p r o t e c t a g a i n s t
specifically?
W h a t d o e s P r o f e s s i o n a l
Indemnity Insurance cover?
Professional indemnity (PI)
insurance covers against a wide
range of scenarios including:
Professional Negligence
Your business is covered against
allegations of making an error in a
piece of work for a client, which
ultimately costs your client either
financially or reputationally. This
could be a perceived failure to
provide your professional services
in line with the duty of care
promised or owed to the client, or a
lapse of judgement when providing
professional advice.
Loss of Documents or Data
Your business is covered in the
event of an important physical or
digital document going missing.
Crucially, you can also be covered if
confidential data is accidentally
lost, deleted or shared with the
wrong person.
Defamation and Libel
Your business or an employee is
Insurance Journal January, February, March 2022
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