Mistakes Happen
Any person who provides advice, designs or offers similar services in a professional capacity is regarded as an expert by their clients. In these times of high consumer awareness' clients who have relied on such expertise will not hesitate to pursue a claim, should they feel they have received a sub-standard service.
A simple error, omission or mis-statement is all it takes to trigger a claim. Lawsuits are becoming more commonplace, with greater access to the courts where awards have risen sharply over the years. Regardless of the guilt or innocence of the professional person the time lost and cost of legal defence can be financially devastating. In fact, in certain cases, defence costs can often outweigh the actual damages awarded.
Increased Duty of Care
Gone are the days when only the traditional professions such as accountants needed protection against liabilities arising out of legal obligations to their clients. Today's clients have high expectations of their professional advisors - whatever their field - and are only too aware of their rights in the prevailing litigation-conscious society.
Why Insure
Professional Indemnity cover is no longer regarded as an expensive and unnecessary business overhead.
Effective risk management can help reduce exposure to allegations of neglect, error or omission, but can never eradicate the risk completely. In the modern business world the environment in which professionals operate is constantly evolving, with client expectations spiralling upwards all the time, so that even the slightest oversight can lead to a claim.
The consequences of being caught unawares can be very damaging, and without adequate insurance protection the financial security of your business could be severely undermined and threatened. Professional Indemnity policies provide comprehensive protection for a wide range of occupations.
Professions & Businesses Covered
Professional Indemnity insurance is compulsory for most Accountants, Surveyors, Valuers and Solicitors practising in the UK. However, we are able to provide cover for most other Professions and Businesses. Within this section of our site we have detailed our areas of expertise and include the facility to download proposal forms.
- ARCHITECTS
- ACCOUNTANTS
- THE ADVERTISING AND MARKETING INDUSTRY
- CONSTRUCTION INDUSTRY AND RELATED PROFESSIONS
- EDUCATIONAL AND RESEARCH ESTABLISHMENTS
- Universities
- Technical colleges
- Schools
- Research associations
- Trade associations
- IT CONSULTANTS
- INSURANCE BROKERS
- INVESTMENT MANAGERS
- INVESTIGATION AND ANALYTICAL SERVICES
- SOLICITORS (England & Wales)
- SURVEYORS
- Estate Agents
- Property Managers
- Auctioneers
- Valuers
- UNDERWRITING AGENCIES
- OTHER CONSULTANCIES AND BUSINESSES
- Travel Agents
- Safety Consultants
- Interior Designers
- Agricultural & Land Consultants.
This Website cannot contain information about all the different occupations for which we are to provide quotations. If you have a specific requirement please click here to contact Tysers, UK Division Corporate & Commercial department.
Professional Indemnity Policy Cover
Scope of cover
We will negotiate with insurers to ensure that your policy offers the widest form of cover available in the market today. Typically the policy will provide indemnity against legal liability to pay damages and claimant's costs and expenses as a result of a breach of professional duty on the part of the business. It also pays for all other costs and expenses incurred with insurer's consent.
The insurance covers the policyholder's liability for the acts, errors and omissions of:
- partners or former partners
- directors or employees
- agents.
In addition, the policy includes cover for liability arising from:
- the dishonesty of employees
- libel and slander
- lost or damaged documents (including the cost of replacement).
Defence costs are paid in addition to the limit of indemnity.
How much cover is required?
Only the professional can assess the amount of cover appropriate to the business. In determining how much cover to effect, it is important that a realistic view is taken of the potential damages and legal costs for which the business could become liable. Being under-insured can be almost as financially disastrous as being without insurance at all - as the examples below reveal.
We recommend that no insurance policy is taken out with a limit of less than £1,000,000. We are also able to negotiate cover up to a limit of £100,000,000 where required. Any professionals in doubt about the amount of cover they should take out should consult their legal advisers.
The following examples highlight the dangers of being under-insured:
- Case 1
It was alleged that accounts prepared by the insured contained inaccuracies and misrepresentations.
Loss: £4.5m
Insurance: £250,000
- Case 2
It was alleged that surveyors were negligent in their valuation on behalf of a lender.
Loss: £1.5m
Insurance: £1m
- Case 3
A small firm of accountants was allegedly negligent in carrying out an audit.
Loss: £2m
Insurance: £1m
- Case 4
A consulting engineer designed a roof which proved to be defective.
Loss £350,000
Insurance: £100,000
- Case 5
A design consultant provided designs for tools to be used in a manufacturing process. It was alleged that designs were inaccurate.
Loss: £150,000
Insurance: £100,000
CLAIMS EXAMPLES RELATING TO PROFESSIONAL INDEMNITY INSURANCE
We believe that reading through examples of claims helps to explain the types of risk our policies aim to protect against and the scenarios that professionals and businesses might encounter. Due to the diverse range of professions we cover under our Professional Indemnity policy, we have separated the claims examples for ease of reference.
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