Professional Indemnity Insurance protects professionals and businesses from financial losses due to claims of negligence, errors, or omissions in their professional services or advice. It typically covers:
- Negligence Claims: Costs and damages from claims that your professional advice or services caused a client financial loss or harm, such as incorrect financial advice or design errors.
- Errors and Omissions: Mistakes or oversights in your work, like missing a deadline or providing inaccurate information, leading to client losses.
- Breach of Duty: Claims for failing to meet professional standards or contractual obligations, including misrepresentation or inadequate service.
- Legal Defence Costs: Expenses for defending lawsuits or claims, even if the allegations are unfounded, including lawyer fees and court costs.
- Defamation: Unintentional libel or slander arising from your professional activities, such as an erroneous statement in a report.
- Regulatory Investigations: Costs related to inquiries by New Zealand professional bodies or regulators, if included in the policy.
This insurance is essential for professionals like consultants, accountants, architects, and lawyers.
Subject to variations in insurers wording, exclusions and case specific endorsements.
