Professional indemnity insurance protects professionals from negligence claims. Coverage for lawyers, doctors, consultants, and other service providers.
Professional indemnity insurance protects professionals from claims of negligence, errors, or omissions in their professional services. Essential for anyone providing professional advice or services.
Claims arising from professional errors, mistakes, or oversights
Damages from work not completed or services not provided
Failure to meet industry standards and obligations
Direct and consequential damages suffered by clients
Legal costs defending your professional reputation
Professional indemnity insurance is essential for service providers whose mistakes could result in financial loss for clients:
Lawyers, legal advisors, solicitors
Doctors, surgeons, dentists, therapists
Investment advisors, accountants, tax consultants
Structural engineers, architects, civil engineers
Management consultants, HR consultants
IT consultants, software developers, system designers
A lawyer fails to file a lawsuit within the statute of limitations, causing the client to lose a KES 5 million claim entirely.
An architect's design fault leads to a building's structural defect, requiring KES 2 million in repairs.
A business accountant fails to identify and report fraudulent transactions, resulting in KES 3 million loss.
A business consultant provides faulty market analysis, leading to a failed investment costing KES 10 million.
A healthcare professional's misdiagnosis leads to improper treatment and patient harm.
Professional legal representation in court proceedings
Court fees, expert witnesses, and technical assessments
Coverage for agreed settlements and court awarded damages
Defense against complaints to professional regulatory bodies
Legal representation in professional discipline proceedings
Coverage for costs to defend your professional license
Select coverage limits based on your risk profile and client contracts:
Coverage should be at least 3-5 times your average annual fee income, or sufficient to cover your largest potential client exposure.
Be aware of what professional indemnity insurance typically does NOT cover:
Ideally before you start accepting clients. Policies typically cover only incidents occurring during the active policy period.
Consider "run-off" insurance for at least 6-7 years. Many claims are made long after work completion. Check your professional body requirements.
Yes, when properly endorsed. Ensure all staff are covered under the firm's policy or have their own individual coverage.
Notify your insurer immediately upon becoming aware of a potential claim. Provide all documentation, correspondence, and incident details. The insurer will investigate and manage the claim.
Yes, typically through endorsements. Notify your insurer of business growth. New limits apply to incidents occurring after the change.
Reduce claims risk and maintain affordable insurance premiums:
Document all client communications, advice given, and work completed. Retain for 7+ years.
Define scope of work, limitations, and client responsibilities in writing.
Stay current with industry standards, regulations, and best practices.
Implement peer review, checklists, and verification procedures for critical work.
Decline work outside your expertise. Refer clients to specialists when needed.
Provide regular updates, manage expectations, and respond promptly to concerns.
For larger practices, establish quality control and risk management teams.
Ensure coverage limits match current business size and client exposures.
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