Professional liability insurance is to protect the professional man or women against legal liability claims for loss or damage sustained as a result of his or her own professional negligence and that of his/her employees in the conduct of his/her business.
In our law, a professional person can be sued in delict and professional negligence is referred to as the negligence and accountability of an expert.
There are policy wordings suited to a wide range of professions, and special tailored policies for specific provisions. A standard wording might cover:
- Breach of duty of care occasioned by any neglect, error or omission on the part of the insured, any employee, any agent, the predecessors, or any other person, firm or company acting jointly with the insured;
- Loss or damage to documents;
- Compensation for court appearance;
- Other costs incurred with the insurer’s consent;
Almost always professional liability cover is on the ‘claims made’ and not the ‘occurrence’ basis. Provided the claim is made during the period of insurance, it does not matter when the actual act or omission (the occurrence) took place.
Delict – Violation of a Law