Professional Indemnity
Any individual, company, organisation or entity providing a professional service is exposed to litigation if a third party suffers a loss as a result of negligence. Professional services can be broadly defined as those requiring special skills including but not limited to advice, design, consulting services.
Often referred to as PI insurance, professional indemnity provides protection to ensure the financial wellbeing, safety and even survival of the insured business in the aftermath of negligence and damages claims brought by third parties.
We cover the full spectrum of traditional professionals including Accountants, Architects, Attorneys, Consulting Engineers, Project Managers and Quantity Surveyors. We are also able to cover Corporates which render professional services and newer/emerging professions such as Technology Companies and BEE Verification Agents.
If you aren't sure if your client meets the requirements for PI insurance click contact us button below and one of our underwriters will assist you.
Professional indemnity section
Legal liability insurance that covers both legal defence costs and damages arising out of the insured's professional services and duties, anywhere in the world, except North America or any territories under its jurisdiction. Compensation would be claimed by a third party alleging that the insured has caused a loss through professional neglect, error or omission.
Liability following employee dishonesty extension
An extension to a professional indemnity policy that covers both legal defense costs and damages arising out of the dishonest, fraudulent or malicious act or omission of any employee. The extension does not provide any indemnity where the guilty party is a director, partner or principal of the insured.
Also not to be confused with Fidelity Guarantee or Misappropriation of Trust Funds cover which are crime covers more specifically underwritten and placed / covered wide of this Extension to cover financial losses sustained due to dishonest acts.
Sub-contracted duties extension
An extension to a professional indemnity policy that covers both legal defence costs and damages arising out of the professional activities undertaken by another party on behalf of the insured. Such duties would be subcontracted or "sub-let" by the insured.
Compensation would be claimed by a third party alleging that the sub-contractor (appointed by the insured) has caused a loss through professional neglect, error or omission.
Joint ventures and consortium extension
An extension to a professional indemnity policy that covers both legal defence costs and damages arising out of the professional activities undertaken in a joint venture agreement or consortium agreement the insured may enter into.
Claims preparation costs extension
In the ordinary course of events, when an insured professional wishes to submit a claim under their PI policy, they would have to first prepare their claims submission. The costs of this preparation process could be relatively expensive given the complex nature of PI claims. This extension to a professional indemnity policy covers those reasonable costs.
Loss of documents extension
Legal liability for the costs and expenses of restoring or replacing lost or damaged third party documents.
Defamation
Cover is granted for claims arising from alleged unintentional defamation of a third party by the Insured during the course of their professional services.
Wrongful Arrest
Indemnify the Insured in respect of claims arising out of wrongful arrest committed by the Insured during the course of their professional services.
Statutory Defence Costs
Provides assistance in respect of legal costs and expenses incurred by the Insured in the defence of any criminal action brought against the Insured for the alleged contravention of any statutes.
Public Liability
Indemnifies the Insured against injuries to third parties or damage to third party property.
Defects in Contract Works
An extension to a professional indemnity policy which allows the Insured to seek assistance with the cost of redesign and rectification of contract works prior to hand over, the cause of which being professional negligence and which would be insurable under the PI policy.
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PI ClaimsWhy place your PI cover with SHA?
Solutions
Unique, bespoke solutions created for unique professional exposuresLongevity
PI claims can take years to manifest and then even longer to be resolved. SHA has over 35 years of experience in handling long tail claims effectively.Strength
SHA is a division of Santam, southern Africa's largest short term insurer.Professional Indemnity FAQs
What are professional services?
In the PI wordings, Professional services are broadly defined as the activities and duties which would fall within the normal scope of duties performed by a professionally qualified person properly registered in terms of the current applicable Act/s that govern/s such profession and field of business, as stated in the Schedule.
Who needs professional indemnity insurance?
- Anyone or any company that provides a professional service, knowledge or gives advice may have a need for PI cover.
- General professional services firms require this cover, examples of these are:
- Legal environment (attorneys/advocates/legal services)
- Built environment (consulting engineers, architects, QS, LS, project managers, developers, contractors)
- Financial environment. (accountants, auditors, actuaries, brokers, financial institutions etc.)
- IT firms, multimedia companies, travel agents, management consultants, valuators, loss adjusters etc
- and many others
Where do claims come from?
Claims generally come from any of the following:
- third parties with whom the client enters into a contract.
- third parties where injury or damage has been caused by the insured’s negligence during the course of professional duties.
- depending on the insured’s type of operation, claims can actually come from anywhere in the world.
What are the key exclusions?
Exclusions do vary by profession. We have several bespoke wordings available at SHA but generally the following exclusions are common:
- Fraud & dishonesty
- Fines & penalties
- Asbestosis
- Nuclear
- Pollution
- War & terrorism
