Is your client an Engineer, Architect, Accountant or Lawyer, or are they experts in their field who people rely on for their knowledge, skill and advice? Do they conduct audits, write reports, or create specifications and designs?
If the answer is yes, then your client needs Professional Indemnity(PI) Insurance.
While the rest of Africa may not be as litigious as South Africa, history has shown that the claims trends do follow and in a hard pressed global economic climate, a party suffering harm at the hands of a professional cannot afford not to take action. And in fact this very economic pressure could also cause a third party to take action in the hope of a pay day. Even in instances where a professional did nothing wrong, if allegations are made against a professional, they would still need to defend themselves, and a good defence costs money. Other reasons professionals may need PI cover is to meet contractual obligations or in many instances to meet the requirements of a Regulatory Body.
Professional Indemnity policies cover allegations of negligence made against a policyholder, but they do not only give the policyholder financial protection for the payment of damages and settlements, but very important, it cover the legal and defence costs in dealing with the matter.
PI insurance essentially provides the named insured in the policy with indemnity in respect of legal liability arising out of the practice of the profession/the conduct of the business. Arises as the result of negligent acts, errors or omissions. The trigger for indemnity is whether the negligent act of the professional in the conduct of his profession caused the harm suffered by the third party.
Covid-19 Exclusion
Absolute Exclusion – infectious disease / epidemic / pandemic
Notwithstanding anything to the contrary within this Policy, the insurer shall not be liable to make any payment under this Policy whatsoever in connection with, arising out of, based upon or attributable to:
i. any infectious or communicable virus, bacteria, disease;
ii. any declared or classified epidemic or pandemic, whether such declaration or classification takes place before or after the commencement of the Policy; and/or
iii. any mutation or variation of any such infectious or communicable virus, bacteria or disease, epidemic or pandemic.