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Professional Indemnity

Purpose

This indemnity ensures the payment of damages to persons who have sustained financial loss arising from the professional's negligence or that of his employee in the operations of the business. It protects against any action for damages brought against the insured in a court of law within Nigeria. It essentially. aims to protect the Professional person against any liability and is a "Claims Made" Policy since it covers claims made against the insured. These claims lead to deductibles which amount to 10% of the claim and may arise regardless of when the event giving rise to the claim occurred. They must be also first notified to the insured.

What it does not cover

Although this policy is widely applied, it has its limits which are determined by the insured with one automatic reinstatement and it does not cover the following claims:

This policy shall not cover claims:
  • risks which are more properly the subject of general public liability
  • Claims made or threatened or in any way intimated on or before the inception date of the policy unless mentioned on the proposal and not excluded by the insurer
  • Those brought about by dishonest, fraudulent, criminal or malicious acts or omission of the insured or its employeesSituations where the incident giving rise to the claim occurred prior to the retroactive date
  • Those claims which are notified under any previous policy

Principal Conditions

The following conditions must be complied with by the Insured :

  • immediate notice to the insurers of any claim made against them, of receipt of notice of an intention to hold the insured responsible or any occurrence which may subsequently give rise to a claim must be given
  • written consent of the insurers must be obtained prior to the admission of liability or settlement The Insured shall not admit liability for or settle any claim by the Insured The policy may be extended on the following grounds:
    • where it involves the Partner's previous business
    • where there is Loss of documents
    • where there exists a Breach of warranty of authority which was not committed in bad faith
    • where there are Former partners

Rate of Premium

  • It ranges from 0.85% - 1.25% which applies to the indemnity limit)
  • For turnover, the range is from 0.25% - 0.5%

 

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