Professional Indemnity Insurance Brokers

Professional Indemnity Insurance to protect your greatest asset

Professional Indemnity Insurance Brokers

Professional Indemnity Insurance to protect your greatest asset

What is Professional Indemnity Insurance?

Professional indemnity insurance protects individuals, businesses, and their employees from the financial burden of claims and allegations made against them due to the advice or recommendations given. It also covers for an actual or alleged breach of professional duty. If you’re a business that provides advice, you may benefit from protecting your business with a Professional Indemnity Insurance Policy.

A Professional Indemnity policy can cover the legal costs, compensation for damages, and other losses incurred as a result of defending your business in court for actual and alleged claims of negligence.

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What does Professional Indemnity cover?

Professional Indemnity Insurance can offer general protection which may include cover against:

Making a mistake that was not intentional;

A client misinterpreting the advice you’ve given;

Copyright claims.

What is typically not covered?

Public Liability Insurance Broker

Personal Injury claims that result from the advice you’ve given

Public Liability Insurance Broker

Intentional Acts including defamation, slander, libel

Public Liability Insurance Broker

Claims made if you don’t have an active policy in place;

Public Liability Insurance Broker

Prior Known Circumstances

Public Liability Insurance Broker

Industry specific exclusions that the insurer have applied

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Undisclosed Activities

Public Liability Insurance Broker

Work done before your retroactive date

Public Liability Insurance Broker

Activities done outside of your insured jurisdiction

Who should insure for Professional Indemnity Insurance?

Professional indemnity insurance is required for some industries to permit them to trade. For example lawyers, accountants, engineers, real estate agents, businesses in the finance industry (e.g mortgage brokers and finance brokers) all require to provide proof of their insurance cover to their professional membership bodies.
It is generally not compulsory for other occupations such as consultants, but it is highly recommended for those who are providing advice that could result in a financial loss as a result of the advice given.

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How Morgan Insurance Brokers can help you

Professional Indemnity policies can be confusing. Morgan Insurance Brokers translate your cover into easy to digest terms so you’re only insuring for the cover you need, and not paying for cover you don’t.
Just like you, we are highly experienced and experts in providing advice to our clients. Engaging Morgan Insurance Brokers will provide you with peace of mind that your day to day business activities are covered by an insurance policy that is going to respond when you need it to.

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Frequently Asked Questions

Professional indemnity insurance cover can range in price depending on many different variables. The main contributor to an expensive policy is if the advice given would result in a physical injury, or a large financial loss to your client. The other contributing factors which drive the insurance premiums are your annual turnover, how many employees are giving advice, and the limit of liability you’d like to insure.

Professional Indemnity Insurance is sometimes referred to as Errors and Omissions. They offer the same benefits
and scope of cover. Some Public Liability policies may offer an Errors and Omissions extension upon request.

Morgan Insurance Brokers can evaluate the type of clientele you work with, and what your likely exposure would be if your work resulted in your clients suffering a financial loss.

Legal fees are covered under a Professional Indemnity policy. However, the amount that your insurer contributes is dependent on the type of cover you select. If you have insured for a Professional Indemnity policy that is “costs in addition”, then your policy will pay for the legal and defence in addition to the policy limit that you’ve selected. If you have insured for “costs inclusive”, then your policy will only pay up to the limit of liability that you’ve selected, with defence and legal fees being deducted from the insured sum. Legal and defence costs can be costly, so where possible it’s in your best interest to obtain a policy that is “costs in addition”.

Professional Indemnity Insurance policies will have a standard excess to all compensation claims paid.
If you have a Professional Indemnity Insurance Policy that has a “costs inclusive” excess this means that you will have to pay the standard excess if there were any legal and defence costs incurred, regardless if there was a settlement claim for compensation. A “costs exclusive” excess means that you do not need to pay an excess if the only costs incurred are legal and defence fees, and where there is no compensation claim.
A “costs exclusive” excess is more favourable and is standardly available. Where it is not always available is for
industries where they may incur a high frequencies of claims, such as a real estate agent, or property management business. For these industries, the insurers will most likely offer a “costs inclusive” excess.

Professional Indemnity insurance Policies are structured on a “claims made basis”. What this means for you is that when you are first notified by a client of a potential scenario that could result in a claim, you should consider letting your insurance company know. Professional Indemnity Insurers require you to notify them of the actual or alleged claim scenario when you first become aware of it so they can intervene immediately. With their help, they can mitigate the risk before it progresses, thus potentially preventing a claim. If you fail to notify the insurer within your policy period, you may forfeit your cover.

Professional indemnity insurance policies are designed on a “claims made basis” meaning that in order to make a claim, you have to have an active policy in place at the time that the claim is brought against you. If you cancel your policy, you are forfeiting all cover for any of your previous works. In order to protect yourself, you should consider restructuring your policy to a “run off” policy.

WATCH MORE ON HOW YOU CAN BENEFIT FROM USING MORGAN INSURANCE BROKERS AS YOUR PREFERRED PROFESSIONAL INDEMNITY INSURANCE BROKER