What is Professional Indemnity Insurance and how does it work?
Professional Indemnity Insurance covers our clients for a 3rd party claim made against them, as a direct result of their own negligence. The PI cover that we offer to our attorney clients is a Top-up cover, over and above the cover that they receive from the Attorneys Insurance Indemnity Fund.
The Attorneys Indemnity fund is the fund that all attorneys are part of as a result of their registration as attorney firms, and the fact that they are attorneys. This fund grants the attorneys Professional Indemnity cover of anything between R1.562 million and R3 125 million Rand depending on the number of Directors the firm has. As mentioned our Professional Indemnity cover is the top-up cover over and above this.
Liquidators do not have the luxury of Professional Indemnity Insurance protection from a fund like the Attorneys Indemnity Fund, and thus in their case, the Professional Indemnity Insurance cover that we sell, will kick in immediately after they have paid the mandatory excess.
Professional Indemnity insurance has to do with understanding the risks inherent in working as a professional. As a result of the position you find yourself in, you need to take adequate steps to protect against the consequences of these risks.
The world in which professionals operate is one of ever increasing pressure, and it is this pressure that can lead to errors and omissions. It is these errors and omissions of course which lead to claims arising against the practice. In our increasing litigious society, and coupled with the high pressures the profession demands, it is imperative that law firms look to insurance companies for Professional Indemnity Insurance top-up cover.
Professional Indemnity Insurance cover provides the professional and the client with peace of mind and financial protection. In these trying financial times, very few firms can afford to be without it, and so we recommend you contact Michael Damant on 011- 784 5373 to receive a competitive quotation for your firm within 48 hours.