Professional Indemnity Insurance - Terminology

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PROFESSIONAL INDEMNITY CIVIL LIABILITY INSURANCE POLICY

Generic Terminology Explained Your policy could contain any or all of the following (Check on your policy wordings):-

• Civil Liability - covers claims arising from the conduct of the Insured's Professional Business Practice
• Breach of Duty - Includes Breach of Duty of Confidentiality
• Defamation - covers both libel (written statement maliciously damaging a person's reputation ) or slander (verbal statement falsely and maliciously spoken or uttered thereby damaging a person's reputation) by the Insured, Employees and Principals
• Loss of or damage to Documents - covers documents owned by a third party in the physical custody or control of the Insured at the time of loss or damage
• Dishonest fraudulent criminal or malicious acts by an Employee or Principal of the Insured - does not cover the Employee or Principal for these claims
• Infringement of any patent, copyright design or trademark - covers the unintentional breach by the Insured of any patent copyright design or trademark including Intellectual Property: Intellectual property represents the property of your mind or intellect. In business terms, this also means your proprietary knowledge
• Trade Practices Act and Fair Trading Acts - covers the whole legislation but does not cover Criminal liability
• Claim Investigation Costs - covers the legal costs and expenses of investigating, defending or settling any claim which would be covered by the Policy (up to the an amount equal to the policy limit)
• Continuous Cover - provides cover for known circumstances arising prior to the Period of Insurance, as long as the Insured was continuously insured with Us and was insured with Us at the time he/she became aware that a Claim may be made, and in the normal course, this Claim would have been covered under both policies
• Joint Venture Liabilities - covers the Insured's individual liability and, if informed about the Joint Venture and it is agreed, you can be covered for both the Insured's individual and joint liability
• Prior Corporate Entities - provides cover for corporate entities through which the insured previously traded, in the course of the conduct of the Insured Professional Business Practice.
• One Automatic Reinstatement of Sum Insured - in the event of a claim in the insured period, your sum insured will automatically be reinstated up to your limit of indemnity. (in certain circumstances, two reinstatements are available).
• Worldwide Territorial - covers a claim or anything giving rise to a claim that arises from anything done anywhere in the world (excludes USA/Canada)
• Cost of Disciplinary Proceedings or Enquiries (Optional) (Sub-Limit) - covers the legal costs and expenses for the Insured's representation at any enquiry, prosecution or hearing of a disciplinary nature held before a legally constituted body, or for a coronal enquiry
• Fidelity (Optional) (Sub-Limit) - covers the Insured for any direct financial loss of money or property suffered as a result of anything dishonest fraudulent criminal or malicious act by an employee
• Civil Penalties (Optional) (Sub-Limit) - covers civil penalties imposed by statute if those penalties are compensatory in nature and are payable to a third party making a claim against you
• Severability & non imputation - covers a situation where, should any insured person fail to comply with their duty of disclosure, make a misrepresentation or fail to comply with any condition of the policy, the cover will not be denied to any other insured person the these grounds if that other insured person was not aware of the matter not disclosed, misrepresented or breached a condition, as the case may be.

* PLEASE REFER TO POLICY WORDING FOR FULL DETAILSOF COVERS, CONDITIONS, EXCLUSIONS & DEDUCTIONS.*

Please note that these generic explanations cannot be relied upon as they may differ from your policy document and vary with different insurers.