Professional indemnity insurance protects professionals and service businesses against claims arising from errors, omissions, negligence, breach of professional duty, or incorrect advice. It is relevant for architects, engineers, doctors, consultants, accountants, technology vendors, and many advisory businesses.
Why Contractual Liability Matters
Many clients now require consultants to carry professional indemnity insurance before awarding contracts. The required limit may be linked to project value, annual fees, or potential financial loss. Without a proper policy, a professional may win the contract but remain personally exposed if a client alleges loss due to advice or design error.
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Claims-made Policy Structure
Professional indemnity policies usually operate on a claims-made basis. This means the policy that responds is typically the one active when the claim is made, not necessarily when the mistake happened. Retroactive date, continuity, and timely renewal become critical for long-tail professional exposures.
- Choose limits based on contract size, possible financial loss, and client requirements.
- Check retroactive date protection when switching insurers.
- Review exclusions for fraud, intentional breach, insolvency, and contractual penalties.
- For professional indemnity information and quotes, call or contact BIMAHEADQUARTER.