Professional indemnity insurance protects the policyholder in respect of claims made for legal liability for losses arising from professional services provided. This generally arises from a breach of professional duty.
Who needs PI insurance?
Anyone that provides professional services for a fee as part of their business activities should consider PI insurance. Professional indemnity insurance used to be taken out by the established professions, such as lawyers, accountants, insurance brokers but the increase in consultancy services has seen an increase in the number and variety of professionals acting on a consultancy or advisory basis and has resulted in an increase in the need for professional indemnity insurance.
How much does PI insurance cost?
Our Professional indemnity Insurance policies start from approx. RM350 premium a year.
The cost of professional indemnity insurance for most professions has come down in recent years. As the need for professional indemnity insurance has increased, so has the accessibility and affordability of the cover. It is now possible to arrange a professional indemnity insurance policy for a relatively low annual premium a fraction of the cost just a few years ago.
What are the limits of indemnity under a PI insurance policy?
The limit of indemnity under a professional indemnity insurance policy is the maximum liability of the insurer in respect of a claim, or series of claims during the policy period.
What is a claims made basis under PI insurance?
Unlike other forms of liability insurance, professional indemnity policies respond to claims made against the policyholder during the period of insurance, not to claims that occur during the policy period. This can have a significant effect on your insurance buying pattern for professional indemnity insurance as if a policy is slowed to lapse or is cancelled there is no further cover provided by the policy if a claim is notified after the policy has expired.
Does my PI insurance protect me in respect of previous work undertaken?
This will depend upon the retroactive date that is contained within your policy. In general terms this will be dated to the inception date of your first professional indemnity insurance policy or for new businesses to the start date of the business.
How do I buy PI insurance?
We have access to a wide range of facilities and schemes tailored to meet the need of a broad range of professions and occupations. You can contact us to discuss your requirements for professional indemnity insurance.