There are many businesses, charities and individuals who offer advice to their clients. Insurers can provide cover against such things as poor advice & negligence, should there be a financial loss as a consequence. The main products offered from insurers are listed below:-
Professional indemnity
If a client alleges that you have provided inadequate advice, design or services, a Professional Indemnity Policy will respond by providing cover for the legal costs and expenses in defending the claim, as well as compensation payable to your client in order to rectify the mistake. This type of policy is generally offered on a “claims made” basis, which means that irrespective of the actual incident date, it is the insurers on cover at the time of when the loss is reported that will respond (Subject to retroactive dates) to the claim.
Directors & Officers
This policy is also commonly referred to as Management Liability and covers the cost of compensation claims made against your business’s directors and key managers (officers) for alleged wrongful acts. The main covers will include breach of trust, neglect, error, breach of duty and misleading statements.
Trustee indemnity
Designed for individuals who operate within charities and not for profit organisations. This policy offers cover for the Trustees legal defence and costs in respect of breach of trust and wrongful acts that were not of a deliberate nature.
Legal Expenses Insurance
Sometimes this is referred to as Legal Protection Insurance, which is an insurance policy taken out by Businesses and Individuals to cover the legal costs associated with certain legal actions. There are many forms of Legal Expenses but generally speaking they are attached to Business, Home & Motor Policies and included with a package arrangement.