Professional indemnity insurance client base broadens over 20 years

The client base for professional indemnity insurance has broadened over the past twenty years, states one industry expert.

The clients that traditionally avail themselves of professional liability insurance has grown over the years to include firms comprised of engineers and architects, dentists, physicians, lawyers, and accountants.  Such specialised business liability insurance has been used to protect against clients or patients who claim that the insured firms had caused  economic loss or physical injury to their clients.

The number of firms now considered to be in need of professional liability insurance has been growing steadily, states ECBM Insurance Brokers and Consultants senior vice president Philip Glick.   Mr Glick stated that many new types of firms have come to need professional indemnity insurance.  These firms include software engineers and computer consultants, real estate brokers, construction contractors and managers, and insurance brokers to name but a few.  All of these business sectors could face the types of liability claims that professional liability insurance cover protects against.

Mr Glick recently shared his thoughts on the changing landscape of professional indemnity insurance in a recent interview.  He stated that many firms are doing themselves a dis-service by only procuring general liability insurance cover.

General liability is only intended to guard against claims that arise from property damage to the client’s premises or bodily injury claims.  Such instances as losses related to product liability would be covered by a general liability insurance policy.

However general liability insurance will not cover a firm in the event of a client suffering an economic loss stemming from an omission or error committed by a business. In order to fill the gap in coverage, industry experts recommend procuring either an additional policy that would cover errors and omissions or to find a more comprehensive professional indemnity insurance cover.

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