What Would Professional Indemnity Insurance Cover you For

[DeludedAussie]

Looking at the cover I see the following exclusion:

Costs and expenses incurred in recall, repair or replacement of deliverables.

This implies that work done that is then questioned is not covered and you can be sued

So can anyone explain exactly what professional insurance would cover you for

[SueEllen]

The client shouldn't sign your timesheet if they aren't happy with the work you produce.

[DeludedAussie]

The client shouldn't sign your timesheet if they aren't happy with the work you produce.

Thats not the question - My question is what does indemnity insurance cover if it does not cover for recall and correction and consequential work

[Moscow Mule]

Thats not the question - My question is what does indemnity insurance cover if it does not cover for recall and correction and consequential work

Losses caused by your cock ups.

e.g. You send £2.5m worth of SWIFT messages out of a bank by mistake. Bank recovers £2m from friendly banks but can't get the rest back.

Bank sues your co for monies, plus a bit of extra for you cocking up - your indemnity insurance pays out £500k to bank for lost monies.

[JamJarST]

The client shouldn't sign your timesheet if they aren't happy with the work you produce.

Really? So if you are doing a piec of work that takes a month to complete, you wouldn't submit a timesheet until it is finished, tested and implemented?

[GeekyGrandad]

Beware that a lot of PII will not cough up if you are sued on the gorunds of incompetence ...... which is a relatively easy way for someone to make you loose your house!

[PolicyBee]

Looking at the cover I see the following exclusion:



This implies that work done that is then questioned is not covered and you can be sued

So can anyone explain exactly what professional insurance would cover you for

Hi!

I'm from PolicyBee, we're a professional indemnity insurance broker.

Your first port of call to ask this question would be your insurer or your broker (if that's who you bought it from). They'll have a thorough understanding of the wording.

A point to remember is that not all professional indemnity policies are the same. What you've highlighted is one tiny part of the cover not what the policy covers as a whole.

There's a couple of pieces on our blog that you might find helpful?

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I do strongly recommend you speak to your broker if you have one or directly with your insurer.