PROFESSIONAL INDEMNITY INSURANCE – ACCOUNTANTS
The policy insures individual accountants or associations/partnerships for their legal liabilities to third parties arising
from their professional negligence or that of their employees. Accountants herein referred to as Professionals.
THE COVER:
Professionals may fail to exercise the skill and care that is expected of them – this skill and care is
above and beyond the ‘normal’ duty of care. Professional indemnity cover is for ‘Loss arising from a
breach of professional duty by reason of any negligent act, negligent error or negligent omission’.
The main elements of the professional indemnity cover will typically consist of:
legal liability/civil liability involving payment of;
damages,
claimant’s costs and expenses,
defence costs;
libel and slander (negligence does not have to be proven for a claimant to succeed with a libel and slander
action);
dishonest, fraudulent or malicious act of employees;
loss of documents;
compensation for court appearance.
Claims Administration: Policies are issued on a ‘claims made’ basis, which means that the claim must be made or
reported to the insurer during the period of insurance.
EXCLUSIONS
Liability covered under a Public Or Product Liability;
Fidelity guarantee;
Loss of documents;
Consequential loss;
Liability arising out of pollution or contamination of any kind;
Activities in connection with fairs and/exhibition, grounds boundary surveys, survey of sub-surface conditions;
Estimation of quantities and qualities/arranging/handling materials;
Atomic works, mining, dams, tunnels, bridges, offshore work;
Losses arising out of physical acts of the insured, their agents/employees in respect of third party injury or
destruction of property;
Losses associated with ownership, maintenance or operation of aircraft, boat, automobile;
Insolvency; and War and related peril.
Download Professional Indemnity insurance Accountants Proposal form
