FAQS

1. Who or what is a professional?
   If you hold yourself out as giving advice and/or provide services of a skillful nature you may be regarded as a ëprofessionalí.
2. Why does a professional need a Professional Indemnity (PI) policy?
   It is required by law that the professional exercise the required skill to an appropriate level expected by that profession. Professionals are only human and mistakes do happen. Any financial loss, injury or damage arising from an act, error or omission by the professional to provide the required level of skill may mean that an award is made in favor of a person who suffers a loss, damage or injury.
3. What protection does a PI policy provide?
   A PI policy safeguards a professionals personal and business assets in the event of a claim, therefore ensuring that he/she or the practice is able to carry on their business.A PI policy will fund the defense of a claim therefore protecting the cash flow and balance sheet of the professional business.
4. What does a Civil Liability Professional Indemnity wording cover?
   It indemnifies the insured for claims arising from any civil award imposed by a civil court, as opposed to criminal liability or penalties enforced by a criminal court.
   A Civil Liability Professional Indemnity wording is broader than a ënegligence wordingí, as it will indemnify the insured for claims arising from strict liability where no negligence is involved.
5. Why do I have to fill out a proposal form?
   To provide the insurer with the minimum level of information to adequately understand your business.
6. What is the retroactive date?
   Retroactive date is the date after which acts, errors or omissions of the insured are covered.That is, any act, error or omission arising from work done after the retroactive date will be covered under the policy.
7. What is automatic reinstatement?
   Unlike other liability policies, the sum insured of the Professional Indemnity policy is limited so that the limit applies to the aggregate of all claims against the policy in the policy period.
   The automatic reinstatement allows this aggregate limit to be increased, while the limit for any one claim remains the limit of the sum insured.
   For example a policy with INR 1,000,000 Sum Insured with ONE-TIME automatic resentment allows the insured to have 2 claims for INR 1,000,000 each during the policy period but not one claim for INR 2,000,000.
8. What is the difference between jurisdiction and territorial limits?
   Territorial limit refers to the place where the act, error or omission occurs. Jurisdiction limit refers to the fact that the policy will only cover claims brought within the court system of the nominated countries.