Professional Indemnity
What is it?
A Professional Indemnity policy will indemnify an insured for its civil liability arising from a claim made against it during the period of insurance alleging a breach in its professional duty in the carrying out of its professional services.
The definition of professional services will usually include design, advice, construction management, surveying, project management, technical calculation, technical specification, programming, feasibility studies, drafting and inspection.
Why?
To protect your business from claims made against you relating to professional services for which you have responsibility contractually or otherwise.
Who needs it?
Any party that has responsibility for professional services on a construction contract.
This will typically include design and construct contractors, subcontractors, and consultants (architects, engineers, project managers, surveyors, certifiers, designers, etc.)
What are some examples?
A year after the handover of a building project cracks begin to appear in the building.
The building owner commences an action against the contractor who was contractually responsible for the design and construction.
During investigations as to the cause of the cracks, it is found that the cause was the building design.
Whilst the contractor did not carry out the design of the building it had responsibility for this under contract.
The professional indemnity policy will indemnify the insured contractor for rectification works as well as the consequential losses suffered by the principal and which form part of the claim against the contractor.
How can I purchase it?
Every client is different, that’s why our insurance service is custom designed for your needs. Click on ‘Contact us’ and you can book a meeting with Cruden Read to determine the most effective and appropriate solution.