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Academia Professional Indemnity Insurance
A professional indemnity insurance policy with optional public liability, employers liability and legal expenses insurance. you can find details regarding premiums and quotations by following the quotes linked to the left, below is an overview of the cover is provided by the policy.
What Is Professional Indemnity Insurance?
Professional indemnity insurance is a third party liability insurance protection. It protects the insured in respect of their civil liabilities for the financial loss of third parties as a result of the business activities of the insured. The core element of this protection is the indemnity in respect of legal liabilities arising from negligent advice and breach of professional duty.
It does not offer cover in respect of claims for injury or damage to property or person, unless this is caused by negligent advice - these risks are protected with other liability policies.
The indemnity limit under a professional indemnity insurance policy is the maximum liability of the insurer in the event of a claim, most policies will pay amounts in respect of legal defence costs in addition to this limit.
Selecting the limit of indemnity is in many cases a rather subjective decision based on the insured's opinion of the risks they are exposed to. Increasingly, this decision is removed from clients as they may well be subject to contractual conditions that specify the limits required.
A significant difference between professional indemnity insurance policies and the classes of insurance that are more familiar, is the claims made basis of settlement. Under a professional indemnity policy the insurer deals with claims that are notified to the policyholder during the period of insurance, hence "clams made" rather than claims for mistakes that occur during the policy term, "claims occurring".
What Is Public Liability Insurance?
Public liability insurance policies protect to the policyholder in respect of their legal liability for injury or damage to property or persons arising out of and in course of the business. The policy does not cover claims arising from negligent advice.
Again, the "sum insured" under public liability policy is referred to as the limit of indemnity, and this represents the maximum payable by the insurer in the event of a claim. In recent years, limits of indemnity under public liability insurance policies tend to start at £1 million, with many policies offering standard limits of 2 million, with options to increase this to £5 million, £10 million, and beyond! The decision as to what limit of indemnity is appropriate is, like in professional indemnity insurance, somewhat subjective, and once again is often driven by contractual requirements.
What Is Employers Liability Insurance?
In the United Kingdom, it is a legal requirement by way of the Employers Liability (Compulsory Insurance) Act 1969 that all businesses and individuals that employ people must hold a current policy of employers liability insurance. There are certain, limited exceptions to this that include;
- a director of a limited company where the director is the sole shareholder and sole employee of the company.
- Certain close family members.
The minimum legal requirement for employer 's liability insurance in the UK is £5 million, although policies in the United Kingdom generally issued with a minimum limit of £10 million.
