In today’s service-driven economy, it is crucial for professionals, and those providing specialist advice, to employ specialised knowledge, skill and care in their business dealings with their clients. These professionals must exercise a degree of care and skill which is reasonably expected of any competent practitioner in that profession.
If a person provides advice or a service to another and carries that work out negligently, they could be held legally liable for the consequences thereof. Liability can arise because there has been a breach of duty of care or a breach of contract. Accountants, architects, engineers, and lawyers, amongst others, include professionals who are often exposed to litigation. Many of the suits brought against these professionals are as a result of damages sustained due to the professional’s failure to perform according to the generally accepted standards in their respective fields.
Heightened consumer awareness, which is largely as a result of new legislation protecting consumers’ rights, coupled with tough economic conditions, is resulting in our society gradually becoming more litigious. Even where there has been no proven error resulting in liability, a third party may initiate a suit against the professional purely asa result of the project not being successful. Defending actions in court could prove to be time-consuming and expensive. If the professional is found guilty, the costs related thereto, which may include reimbursement of the litigant’s expenses, may be an unaffordable financial burden.
To err is human – everyone makes mistakes. A professional cannot ignore an accusation of negligence; the allegation must be defended or admitted. In either case, there will be cost implications. In today's litigious age, where 'claim' often follows 'blame', having adequate insurance cover which can protect the individual and the business from the financial fallout of such claims is imperative. There is no doubt that the quantum of court awards has risen sharply in recent years and professional indemnity insurance will ease the financial burden of defending claims and damages payable in respect thereof. It provides the ultimate safety net when all else fails.
Indemnity policies cover the following including defence costs:
Camargue’s unique M³ approach to insurance is
geared towards managing, mitigating and migrating critical business risks – an
outcome achieved through the provision of value-added risk benefits to
policyholders. Notwithstanding the coverage provided in terms of the policy,
the additional risk management benefits further enhance the Camargue product
offering and go beyond simple insurance. The overall result is a well-rounded
and complete solution to the risks faced by businesses.
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