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.


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:

  • 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.


The customer must complete the proposal form and ensure that all the information as are required for proper underwriting is given.

Flexibility in rating may arise where experience justifies it. Apart from the agreed rating pattern adopted by banks and related institutions, the premium rate ranges from between1.5% and 2.5%, and is subject to several factors such as the loss history or experience of the client or the industry concerned, the aggregate exposure, occurrence.
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