Professional indemnity

Until 1974, an architect was considered in law to be a quasi-arbitrator, and his valuation was final. However, the case of Sutclijfe v. Thackrah (1974) saw an end to this role. In that case, the architect overvalued the work that had been carried out, and because the client ordered the contractor off the job, he suffered loss, because of which he successfully sued the architects for damages. Architects and engineers suddenly had a greater interest in professional indemnity insurance. 

Some insurers have used the type of wording found associated with public liability policies to restrict indemnity for sudden and accidental pollution only, to qualify indemnity for professional indemnity (PI) policies. Does the concept of sudden and accidental incident have any meaning when applied to a consultant s PI policy ... 

Environmental consultants tend not to have a very large capital base. Their greatest resource is their people. It is not uncommon for consultancies to rent out office space. In the event of a serious claim against them they can easily face insolvency. The provision of properly worded professional indemnity insurance offering cover for all negligence and associated claims is the only way a consultancy can operate effectively in today s market place. 

Where consultants are involved in providing contracting services as well as consulting services, they must ensure that they have an adequate degree of insurance to cover both aspects of their work. Although not common, it is possible to obtain tailor-made policies that encompass the indemnification provisions of both a professional indemnity policy and a public liability policy providing the necessary degree of cover for pollution related claims. 

Professional indemnity insurance is the kind of insurance that protects the insured from claims by dissatisfied clients in disputes over errors. The most usual claims involve ... 

In this respect professional indemnity insurance can cover mainly civil liabilities owing to professional negligence. 

Indemnity is awarded in respect of injury to third parties and damage to property arising out of or in connection with the exercise of professional engineering skill. The following are excluded ... 

For the purpose of this indemnity, the expression agents shall be deemed to include without limitation any nurse or other health professional providing services to the NHS Trust under a contract for services or otherwise and any person carrying out work for the NHS Trust under such a contract connected with such of the NHS Trust s facilities and equipment as are made available for the Clinical Trial. 

To determine how such cost increases related to inflation in the economy as a whole, a visit was made through the Internet to http //www.InflationData.com. Using the Inflation Data Calculator provided there, with 1995 having a base of I, a computation indicated that the accumulated inflation from January 1995-December 2005 was 35%. In those years, the increases in average workers compensation indemnity and medical claim costs stood at a factor of approximately 3.5 times inflation. That is significant, deserves attention, and defines opportunities for safety professionals to demonstrate additional value. In addition, data on the cost of serious injuries in relation to lesser injuries have been available for quite some time. Note the following indicators. 

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