This document summarizes the key elements of professional indemnity insurance including protection for failing to meet professional standards, coverage for negligent acts and professional duties, and notification requirements. It also outlines important considerations like policy definitions, exclusions, territorial limits, and ensuring proper retroactive dates and coverage for subcontractors. The document stresses that obtaining the right professional indemnity insurance and advice is fundamental for businesses.

2. • Protection for your business if you fail to exercise the standard
expected of a competent member of your profession or business
• It is not
many clients think otherwise!

3. • Consultants and advisors holding themselves out as having specialist
expertise
• Contractors who have design responsibility – even if subbed out
• Mandatory for certain professions – such as

4. • `Claims made` basis of cover
• Annual policy
• Business description
• Retroactive date
• Limit of Indemnity – variations

5. • Defence Costs
• Excess
• Extensions in cover

6. • Negligent act, error or omission
• Breach of Professional Duty
• Civil Liability

7. • Clear policy definition of both a `claim` and a `circumstance`
• Notification conditions
• Insurers’ rights if not complied with
• Protection

8. • Existing claims or circumstances
• ExpressWarranties of
• Indemnity clauses
• Fines, penalties and liquidated damages
• Collateral warranties

9. • Insurers’ subrogation rights ensure not waived or modified
• Non-standard appointment documents - reasonable or onerous?
• Collateral warranties - check what you are agreeing to
• Use of sub-consultants - ensure maintain adequate cover
• Territorial Limits and Jurisdiction - working for `multi-nationals`
• Retroactive date - is it correct?
• Previous business activities - make sure insured
• Joint ventures - beware of cover limitations
• Overseas insurance requirements - check

10. • The right cover and advice is fundamental to your business!
• Only deal with a broker that:
• Watson Laurie is such a broker!
cfitzgerald@watsonlaurie.co.uk