What is Professional Indemnity Insurance?

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.

Subscribe now
Read More

More Articles

Understanding VAT & How To Save On Your MedMal Insurance Premium

VAT explained Value Added Tax (VAT) is a secondary tax that is charged on the consumption of goods and services in the economy. In the context of medical practitioners, VAT is charged on the consumption of your services (the provision of healthcare). This means that a portion of your revenue is paid to SARS as…

All you need to know about a ‘Claims-Made’ Policy

There are two key features of a claims-made policy. Firstly, the policy limits coverage to claims first made during the policy period. A claim is typically “made” on the date that you notify your broker or the Insurer. A claim made before the policy inception date or after the expiration date is not covered unless…

What is a reportable circumstance and what is a claim?

A reportable circumstance is any occasion when the Insured first becomes aware of any of the following: an intimation of a possible claim for damages, including correspondence intimating that the Insured was at fault in relation to performing any service or is liable for costs incurred or losses suffered by a third party; or the…