How Do You Select the Best Indemnity Insurance for Professionals in South Africa?
The Professional Indemnity Insurance Market List market is currently in its soft phase, with insurers still placing emphasis on volume at the expense of profit in South Africa. And what of the future? It is certain that at some stage the market will enter harder conditions. There is uncertainty as to when the market might harden and by how much. Invariably the deeper and more prolonged the soft market the more pronounced the adjustment will be when it comes.
Events in insurance, as in life, are powerful and unpredictable. What future events might conspire, individually or collectively, to prompt a return to harder market conditions? The following is a list in South Africa, by no means exhaustive, of the likely culprits :-
Griffiths & Armour Professional Risks acts as manager for the professional indemnity division of Griffiths & Armour.
All rights reserved. This document does not present a complete or comprehensive statement of fact or the law, nor does it constitute legal advice. It is intended only to highlight issues that might be of interest to Griffiths & Armour clients; specialist legal advice may be required where appropriate. Where links to third party indemnity insurance websites are provided, we accept no responsibility for their content.
Interesting Facts About About indemnity insurance for Professionals in South Africa:
The field of insurance is always a tough one to comprehend with. In case you are aware of this field then you must have heard a lot about professional indemnity insurance. It is a simple insurance policy which indemnifies the policy holder from monetary loss due to several claims from the other involved party. There are different kinds of professional indemnity insurance policies that can be chosen by a business house in dissimilar industries. Here, we are going to render you complete information regarding professional indemnity insurance.
Let us now talk about some of the most essential things in regard to this topic. You should pay proper attention towards the below mentioned points.
Advantages
A professional indemnity policy offers a number of advantages to the policy holder. In case a simple claim is acquired against the policy holders, the insurance firm is going to conduct a proper investigation on their behalf. Here, the insurer of the policy needs to reimburse for the legal fees that accumulates.
Warning
Professionals and experts that are functioning in medical industries might be needed to carry a suitable indemnity insurance policy. The policy holder is responsible for the additional amount in case the policy insurance amount doesn't really cover the sum to be reimbursed out in a legal claim.
So, all in all we can easily conclude that a professional indemnity insurance policy can offer you a wide range of benefits. You should however research hard regarding it before investing your money. With a little bit of knowledge and skills you can surely make the most out of this coverage policy. For any other assistance, you can surf the net and seek out some professional help. I hope this article could provide you some crucial information in regard to this policy.
Professional Indemnity (PI) Insurance Market
Professional Indemnity Insurance is designed to protect your business against any claims arising from negligence advice or services. It covers for people working for a business that involves risk.
Professional Indemnity Insurance policies are purchased by business owners to protect their companies from financial liability in case of claims of negligence. The individual under this is at the same time provided with assistance by Professional Indemnity Insurance when fighting lawsuits. Professionals like accountants, engineers and architects can choose several types of this insurance plan and make their business well protected.
However a professional can be granted or denied by an insurer upon applying for a Professional Indemnity Insurance for several reasons. These factors may include business locations, claims history, industry and coverage amount. The degree of risk reflected by the premium amount is determined by these factors. The insurance company will raise the premiums if a professional is granted a policy but poses a higher risk than standard applicants.
Professional Indemnity Insurance Market List in South Africa
One of the areas of greatest confusion is the difference between Professional Indemnity, General Liability and Product Liability Insurance. Professional Indemnity Insurance provides coverage for professionals (corporate or individual) for any negligent act, error or omission alleged to have occurred while in the performance of their professional activities and duties. It differs from General Liability and Product Liability Coverage in that the acts covered are those acts performed by an engineer, architect, doctor or attorney in rendering professional services to their clients. To better understand this coverage we will have a brief discussion below of Product Liability, Professional Indemnity and the application of the latter and how it functions.
A. Product Liability
Product Liability is the legal responsibility of a manufacturer to a consumer of its' product. Liability arises out of the negligent manufacture of a product including defective or faulty workmanship, materials or components. It is a liability that arises from the failure of a manufacturer to properly manufacture, test or warn about its product and occurs when the product departs in a negligent manner from its intended function.
Firstly, Professional Indemnity is a third-party coverage that is a liability cover, not a property cover, which is provided to the assured for the claims against the insured from third party claimants.
Secondly, while coverage attaches from the beginning of the design phase of the project, a claim will not be until after delivery of the product and the product has left the premises of the assured.
Coverage for liability which occurs in the assureds' workplace must be found elsewhere, such as the General Liability, Builder's or Contractor's All Risk or Protection and Indemnity policies.
Thirdly, of course the claim must arise out of a failure in the professional services provided. There is some limited coverage afforded under the Professional Liability for faulty workmanship, materials and/or components. Also, included in the Product Liability cover would be any claim for defective materials or components, defect in manufacturing, or workmanship.
Fourthly, any inadvertent, non-intentional breach of a patent or copyright infringement is also covered under this policy.
Do You Need Professional Indemnity Insurance?
Where are we now - and the future?
The Professional Indemnity (PI) market is currently in its soft phase, with insurers still placing emphasis on volume at the expense of profit.
And what of the future? It is certain that at some stage the market will enter harder conditions. There is uncertainty as to when the market might harden and by how much. Invariably the deeper and more prolonged the soft market the more pronounced the adjustment will be when it comes.
Events in insurance, as in life, are powerful and unpredictable. What future events might conspire, individually or collectively, to prompt a return to harder market conditions? The following is a list, by no means exhaustive, of the likely culprits:-
Griffiths & Armour Professional Risks acts as manager for the professional indemnity division of Griffiths & Armour.
Griffiths & Armour Professional Risks Ltd is an appointed representative of Griffiths & Armour which is authorised and regulated by the Financial Services Authority.
All rights reserved. This document does not present a complete or comprehensive statement of fact or the law, nor does it constitute legal advice. It is intended only to highlight issues that might be of interest to Griffiths & Armour clients; specialist legal advice may be required where appropriate. Where links to third party websites are provided, we accept no responsibility for their content.
