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Professional Idemnity

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This policy protects the insured against professional negligence. It is an important policy today. It can be extended to cover: -

a)    Libel or slander
b)    Dishonest, fraudulent, criminal or malicious act or omission of the employees
c)    Loss of documents

The policy protects the organization and/or directors against any claim brought against them for breach of professional duty through act of negligence, error or omission.

The policies are known under different names such as:-

(i)     Malpractice for hospitals and doctors.
(ii)    Professional indemnity for lawyers and accountants.
(iii)   Trustees liabilities for trustees of pension schemes.
(iv)   Directors and managers in the case of directors and managers of commercial and trading companies.
(v)    Broker’s liability for insurance brokers and stock market brokers.