Everything you need to know about Professional Indemnity Insurance

Everything you need to know about Professional Indemnity Insurance | Munro Flowers & Vermaak Attorneys

What is professional indemnity insurance?

Also referred to as professional liability insurance, professional indemnity insurance covers the legal cost and expenses suffered in your defence.

Do you need professional indemnity insurance?

Most professions require to have a professional indemnity insurance. Even if you are not obligated to have PI insurance, you could be liable for thousands of rands worth of compensation payments and legal fees – as well as the loss of income from the time spend defending.

You are probable to need professional indemnity insurance if:

  • You would like to be protected against claims of negligence or mistakes in work you have done for your client.
  • You give professional advice or services to your clients.
  • Your industry requires you to have it.
  • You are a consultant, contractor, freelancer or self-employers and your client has asked you to arrange PI insurance in order to take the contract over.

What does personal indemnity insurance cover?

PI insurance covers allegations against individuals for a violation of a professional duty. However, depending on the policy take. Personal indemnity insurance cover may extend to:

  1. Defamation of character,
  2. Damages arising from fraud,
  3. Misleading conduct,
  4. Defence costs surrounding claims,
  5. And breach of intellectual property rights.

What you need to do

Averting is better than correcting, so attempt to make sure you are never in a position to have an allegation made against you. This can include keeping up to date with updated requirements, in the fields that you provide advice.

One way to avoid the risk of a potential claim is to ensure all projects are well documented, specifically in areas that have high risk as well as follow ups in order to minimise the risk to your client. In addition, communication should clearly specify responsibilities and areas of potential debates are underlined and dealt with immediately.


If you are in need of assistance of a professional indemnity claim, visit Munro Flowers & Vermaak Attorneys for professional and friendly legal service in Johannesburg. Enquire online for more information and book an appointment today!

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