PROFESSIONAL PROTECT INSURANCE
CONTENT ▪Type of Professional Indemnity policies ▪Policy Coverage’s ▪ Extensions ▪ Exclusions ▪ Claim Scenarios
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Types of Professional Indemnity Policies • Technology & Telecommunications Professional Indemnity Insurance • Architects Professional Indemnity Insurance • Engineers Professional Indemnity Insurance • Construction Professional Indemnity Insurance • Miscellaneous Professional Indemnity Insurance • Media Professional Indemnity Insurance
• Construction Project Professional Indemnity Insurance
The Insurer will pay on behalf of the Insured all Loss resulting from any Claim against an Insured for a civil liability arising from an Insured’s Professional Services
Policy in-built coverage’s •
Legal Representation Costs: the reasonable legal costs and expenses for which an Insured is legally liable and which are incurred, with the prior consent of the Insurer, for legal representation in connection with any attendance at an Inquiry.
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Emergency Costs Advancement: Defence Costs or Legal Representation Costs are incurred by an Insured, with the prior consent of the Insurer.
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Defamation: Allegation of libel or slander arising from performance of Professional services
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Lost Documents: replacing or restoring any Documents which during the Policy Period have been
Protect PI Insurance - Coverage’s •
Professional Inquiries: reasonable fees and costs incurred preparing and attending at any Professional Inquiry
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Mitigation: Remediation or mitigation and only insofar as such costs are necessary to prevent or reduce the amount of a Claim covered.
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Fraud & Dishonesty: Claim by Third Party due to Fraudulent or dishonest conduct of any Employee of the Insured
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Court Attendance: Costs per day attends a court or an arbitration or an adjudication hearing as a witness in connection with a Claim.
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Automatic Acquisition of Subsidiaries: threshold less than 10% of the total annual revenue of the Policyholder declared in the latest Annual Report and Accounts as at inception
Protect PI Insurance - Coverage’s
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Continuous Cover: Cover is provided under this policy for any Claim arising from a Wrongful Act, fact or circumstance which could or should have been notified under any earlier policy with the Insurer,
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Fines or penalties wherever insurable by law: Full Limit
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Carve back cover for bodily injury/ property damage: arising out of negligent act or error or omission in rendering or failure to render professional services and technology-based services.
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Carve back for Infrastructure unless outside the direct control of the Insured
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Disputed Fees: The Insurer will compensate the Insured for the Disputed Fees where the Insured agrees not to contest any outstanding fees and where at the sole discretion of the Insurer, the Insurer decides that by not contesting any outstanding fees that this will prevent a Claim.
Protect PI Insurance Policy Endorsements • • • • •
Virus Hacker Attack Unauthorized Access Privacy Breach Notification Expenses Additional insured Endorsement (Covered only for liability claims arising on additional Insured due to negligence of the Original Insured) Waiver of subrogation clause wherever required by the contract
Exclusions • • • • • •
Bodily Injury/Property Damage Conduct Contractual Liability Cost and Time Manufacturing liability Infrastructure- outside the direct control of the Insured
Protect PI Insurance - Claims •
In the course of making a back up of a client's hard disks, which was part of the service he was contracted to do, an IT consultant inadvertently overwrote all of the data on the client's hard drives. The data could not be retrieved. The client sued for damages.
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An advertising consultant added the wrong telephone number in an ad. This resulted in a reduction in sales, the resultant income and a poor image of the brand. The consultant's client claimed successfully for loss of income and damage to its brand. The costs of the claim were covered under the consultants professional indemnity insurance.
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Claimant file suits of Rs.1 Crores against the service deficiency on the part of the insured for not being present in the Hospital at the time of delivery and could not store the Stem cells.
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As a result of inadequate design by an engineer, air extraction and temperature control equipment in a restaurant failed to work properly. The restaurant was closed pending repairs. The claim was settled at £150,000 plus costs under the engineers professional indemnity insurance.
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