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.

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
 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.

 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.

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