Companies or individuals providing professional advice or professional services can be held liable for claims arising from errors or omissions committed by employees in the course of conducting business.
Professional services companies are operating in an environment of increased accountability. Third parties are becoming more aware of their legal rights in the event of a financial loss and we are seeing an increase in the number and size of claims being brought against professional services companies.
In addition to the payment of settlements and awards, substantial defence and legal representation costs can be incurred in defending the company and its reputation, even if the claim appears to be without substance.
Professional Indemnity policies provide protection for claims brought against both the company and the principals, partners and employees. These policies can provide protection for:
- Settlements
- Judgments
- Investigation costs
- Defence costs