Some important Professional Indemnity FAQs to be aware of.

As a professional person providing advice, designs, specifications and supervision for a fee or gratuitously, you owe a duty of care to your client and potentially to third parties.

The duty of care owed to your client is to exercise “due skill and care” or, as it is more commonly described, to exercise “reasonable skill and care”. Although it may be possible to try to protect your position through your contract with your client, in reality it can be very difficult for a professional to escape liability by relying on a contractual provision.

It is commonly the case that professionals are sued even where they believe they have a strong position under their contract. If that happens, they face the cost of litigation and its associated risks.

Professional indemnity insurance generally provides an indemnity for damages awarded following a breach of professional duty through neglect, error or omission.

An indemnity is also provided for legal and other costs and expenses incurred in defending claims.