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Professional Indemnity Insurance - Overview

Product Codes

  • 5050 - Professional Indemnity (General)
  • 5060 - Medical Malpractice
  • 5070 - Directors & Officers Liability

Coverage Basis

Professional Indemnity insurance operates on a claims-made basis, covering: - Professional negligence - Errors and omissions - Breach of professional duty - Legal defense costs

Key Features

Retroactive Coverage

  • Covers claims arising from work performed before the policy start date
  • Retroactive date must be specified
  • Critical for claims-made coverage

Sum Insured Structure

  • Represents the maximum liability limit
  • Required for all PI policies
  • Forms the basis for premium calculation

Coverage Components

What's Covered

  • Professional negligence claims
  • Errors and omissions in professional services
  • Breach of professional duty
  • Defense costs (even if claim groundless)
  • Investigation costs
  • Court attendance costs

What's Not Covered (Typical Exclusions)

  • Deliberate wrongful acts
  • Criminal acts
  • Prior known circumstances
  • Claims notified before retroactive date

Product Variations

5050 - Professional Indemnity (General)

Coverage: General professional liability for various professions - Consultants - Engineers - Architects - IT professionals - Other service providers

5060 - Medical Malpractice

Coverage: Healthcare professional liability - Doctors and physicians - Surgeons - Medical specialists - Healthcare facilities

5070 - Directors & Officers Liability

Coverage: Corporate management liability - Directors and officers - Management decisions - Corporate governance - Regulatory compliance

Next Steps

Conditions & Exclusions

Standard Exclusions

What's NOT Covered:

  1. Deliberate or Dishonest Acts
  2. Intentional wrongful acts
  3. Fraud or dishonesty

  4. Criminal acts by insured

  5. Prior Known Circumstances

  6. Claims or circumstances known before policy start
  7. Matters known before retroactive date

  8. Undisclosed material facts

  9. Trading Losses

  10. Normal business trading debts
  11. Financial insolvency

  12. Business failure losses

  13. Property Damage & Bodily Injury

  14. Physical property damage (needs TPL coverage)
  15. Bodily injury to third parties (needs TPL coverage)

  16. Employee injuries (needs WC coverage)

  17. Contractual Liability

  18. Liability assumed under contract (unless would exist without contract)
  19. Warranties and guarantees

  20. Penalty clauses

  21. Intellectual Property

  22. Patent infringement
  23. Copyright violations
  24. Trademark disputes

Business Types We DON'T Insure

High-Risk Professions (Declined): - Financial advisors (requires specialized FI coverage) - Stockbrokers and investment advisors - Insurance brokers (separate E&O coverage) - Legal practitioners (requires separate legal PI) - Real estate developers (needs specific coverage)

Activities Requiring Special Terms: - Asbestos-related work - Nuclear industry consultants - Aviation consultants - Marine surveyors - Environmental consultants

Geographic Limitations

Standard Coverage: - UAE and GCC countries only

Excluded Territories: - USA and Canada (requires separate coverage or endorsement) - High-risk jurisdictions

Claims Conditions

Notification Requirements: - Claims must be notified during policy period - Circumstances that may lead to claims must be reported - Late notification may void coverage

Retroactive Date: - Claims arising from work before retroactive date NOT covered - Cannot be changed mid-term - New insureds: retroactive date = policy start date

Specific Conditions by Product Type

5060 - Medical Malpractice: - Criminal medical procedures excluded - Experimental treatments (unless approved) - Cosmetic procedures (need disclosure and approval)

5070 - Directors & Officers: - Personal profit or advantage excluded - Deliberate breach of law - Prior litigation or investigations

Underwriting Declinations

We Will NOT Quote: - Businesses with ongoing litigation - Previous PI claims >3 in last 5 years - Adverse regulatory actions - Bankruptcy or insolvency proceedings - Poor professional standards history

Special Conditions

Excess/Deductible: - Minimum excess applies per claim - Varies by profession and limit - Excess is insured's responsibility

Defense Costs: - Included within limit of liability - OR unlimited (depends on policy wording)

Limit Erosion: - Each claim reduces available limit - Aggregate limit applies - Multiple claims can exhaust policy

Critical for Portal: Before accepting quote, validate business type against exclusions list. Flag high-risk professions for underwriter referral.