Professional Indemnity Insurance Cover
What is Professional Indemnity Insurance?
Professional indemnity insurance is a protective insurance policy that safeguards your expertise and reputation by covering you from the financial impact of claims arising from your professional services. Depending on the specific policy you have purchased, professional indemnity insurance will cover negligence, errors and omissions, breach of duty, and civil liability arising from your actions. Whether you are providing advice, designs, recommendations, or specialized services, this coverage steps in when clients allege errors, oversights, or breaches of professional duty.
Why you need a Professional Indemnity Insurance Cover
Professional Oversight
In 2016, a leading Kenyan audit firm faced professional liability claims following the collapse of Imperial Bank. The Professional Indemnity claims exceeded KES 100M.
Healthcare Decisions Impact
Multiple insurance claim rejections due to documentation issues plagued a Nairobi private hospital in 2021. Professional liability exposure exceeded KES 25M for the facility and its practitioners.
Construction & Design
Following the 2019 collapse of a residential building in Nairobi’s Tassia estate, engineers and architects faced professional liability claims exceeding KES 50M.
Financial Advisory
A Nairobi-based investment firm faced claims after recommending investments in a company that was later placed under statutory management. Claims from affected clients totaled KES 35M.
Tech Implementation
A leading Kenyan bank’s core banking system upgrade in 2022 led to transaction errors, resulting in professional liability claims against the implementing IT firm. The claim amount exceeded KES 80M.
Legal Documentation
A Mombasa-based law firm faced claims after documentation errors in a major land transaction. The resulting liability claim was KES 45M.
Benefits of Professional Indemnity Insurance
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Financial Security: Your PI cover ensures that one mistake won’t wipe out both your years of hard work and bank account.
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Business Continuity & Growth: You maintain your cash flow, even when facing claims, while we manage any legal complications.
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Professional Credibility: Your PI cover signals to clients that you’re prepared, professional and committed to protecting their interests as well as yours.
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Client Relationship Protection: When legal issues arise, your PI covers ensures smooth professional resolution while preserving the client relationship you’ve worked hard to build.
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Comprehensive Protection: Your PI cover adapts to protect your evolving professional practice against both traditional and emerging risks.
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Expert Support When you Need It: Your PI cover connects you with specialized professionals who understand your industry and will guide you through any professional challenge.
The Real Cost of Being Unprotected
- Professional reputation damage can result in 30-40% revenue loss.
- Business interruption during claim resolution averages 3-6 months
- Recovery from a major claim without insurance takes 2-3 years on average
- 60% of uninsured professionals facing claims experience severe financial distress
How to Get a Quote
Step 1: Reach Out
Contact Dawit Insurance Agency by either filling and submiting the form at the bottom of this page or booking a FREE consultation session with one of our experts. To book a free consultation session, click the green “Free Consultation” button at the top right of your screen.
Step 2: Get a Quote
Once we receive your request for a PI cover, we’ll design a customized policy that addresses the risks in your specific professional industry. You will recieve this information through the contact details you’ve shared with us.
Step 3: Secure Your Expertise
You’re professional indemnity cover will become active after you’ve completed the onboarding process and purchased your policy. You will recieve policy documents with details of your PI cover.
Frequently Asked Questions
Frequently Asked Questions About Professional Indemnity Insurance
- What is the meaning of professional indemnity insurance?
- How much is professional indemnity insurance in Kenya?
- What is generally covered by professional indemnity insurance?
- What are the benefits of professional indemnity insurance?
- What happens if i don’t have professional indemnity insurance?
- What is not covered by professional indemnity insurance?
- What is an example of an indemnity insurance?
Professional indemnity insurance (PI) is a type of liability insurance that protects professionals from claims arising from errors, omissions, or negligence in their work. It safeguards your reputation and finances by covering legal costs and potential damages.
The cost of professional indemnity insurance in Kenya varies depending on several factors, including:
- Your profession: Different professions have varying levels of risk.
- Your level of experience: More experienced professionals may qualify for lower premiums.
- The size of your business: Larger businesses typically require higher coverage limits.
- The specific risks associated with your work: Certain types of work, such as medical or legal services, may carry higher risks.
To get an accurate quote, it’s best to contact our experts at Dawit Insurance Agency. We can assess your specific needs and provide you with a tailored quote.
Professional indemnity insurance typically covers:
- Legal costs: This includes attorney fees, court costs, and other legal expenses.
- Damages awarded to clients: If you’re found liable for negligence or malpractice, your insurance can cover the damages awarded to the client.
Defense costs: This covers the cost of defending yourself against claims, even if the claim is unfounded.
- Financial protection: Protects your assets from potential claims.
- Business continuity: Ensures uninterrupted business operations.
- Reputation protection: Safeguards your professional reputation.
- Client confidence: Reassures clients of your commitment to quality service.
- Regulatory compliance: May be required by regulatory bodies.
If you don’t have professional indemnity insurance and you’re found liable for negligence or malpractice, you could be personally liable for the damages awarded to the claimant. This could result in significant financial loss and damage to your reputation.
Professional indemnity insurance typically does not cover:
- Deliberate acts of wrongdoing
- Criminal acts
- Losses resulting from fraud or dishonesty
- Punitive damages
Professional indemnity insurance is one type of indemnity insurance. Another common example is product liability insurance, which protects businesses from claims related to defective products.
To get a more accurate and comprehensive understanding of professional indemnity insurance, book a free consultation session with an insurance professional from Dawit Insuarance Agency.
