Professional Indemnity Insurance Cover

Professional Indemnity is designed to indemnify the insured professional against pecuniary losses arising out of:

  1. A negligent act
  2. Error or omission, which causes loss to be suffered by his / her client or a third-party Professional Indemnity (PI) Cover in general provides compensation for losses resulting from:
  3. Breach of professional duty
  4. Breach of  warranty
  5. Breach of trust committed in good faith
  6. Defamation and/or injuria
  7. Infringement of copyright
  8. Destruction or loss of any documents entrusted to the professional insured
  9. Defence costs that may arise in the event of a  third-party claiming against the insured

Professional Indemnity Claim Examples:

  1. Design failure or specification failure
  2. Negligent project management
  3. Incorrect advice provided by professionals (attorneys, advocates, accountants, actuaries, engineers, architects, IT professionals etc.)
  4. An auditor or accountant fails to submit tax returns timeously
  5. An estate agent gives house keys to a potential buyer without carrying out proper checks. The potential buyer turns out to be a con man who strips the house of all its valuables
  6. An employment agency fails to do the proper background checks before placing a candidate
  7. A valuator incorrectly evaluates a property for a bank

Categories of Professional Indemnity Insurance

The industries in which we work include:

  1. Attorneys
  2. Built environment professionals:
    • Architects
    • Consulting Engineers
    • Design and Construct
    • Land Surveyors
    • Quantity Surveyors
    • Project Managers
    • Other built environment professionals
  3. Accountants and Auditors
  4. Estate Agents
  5. Freight Forwarders
  6. Computer Industry
  7. Insurance Brokers
  8. Underwriting Managers
  9. Miscellaneous PI
  10. Business Rescue Practitioners
  11. Medical Malpractice

Novarti's Professional Indemnity medical malpractice policy is designed to cover medical professionals and clinical trials in the event of a claim or complaint arising out of their negligence while treating a third party patient (risk dependent).

The policy covers claims for injury or damages, including emotional shock and loss of earnings claimed by a third party incurred as a result of alleged negligence of a medical practitioner. The policy covers approved defence costs when defending the third party claim.

Cover extends to a sub-limited amount for defending complaints made to the Health Professionals Council of South Africa (HPCSA) or other regulatory bodies by third parties.

It excludes billing complaints and criminal hearing costs made to the HPCSA.

Professional Indemnity Claim Examples:

  1. Failure to diagnose
  2. Misdiagnosis
  3. Dispensing errors
  4. Nursing home abuse
  5. Failure to refer to a specialist



By Fatima Ebrahim