Professional Indemnity Insurance in Action | Covered Insurance

Here are some real claim examples we have been sent for Professional Indemnity Insurance. This cover is required and important. Talk to us for more details


We are constantly asked about types of claims that can occur requiring professional indemnity cover. Below are some real claims examples for Professional Indemnity Insurance, in our key industries and why this cover is required and is so important.
Design and Construct
A contractor for a programme of school refurbishment engages a sub contractor who, it is alleged, fails to carry out the design and installation works on time to the required standard. The contractor claims financial redress from the sub contractor for the financial loss suffered by having to employ additional services to finish the work.
Technology: system doesn’t meet requirements
An I.T. provider enters into a contractual agreement with a client to replace a data management system. For a variety of reasons, the client does not receive a system that met the requirements. The contract comes to an end with each party asserting that they have a right to pursue a damages claim.
Media: breach of creative licenses
A media firm places music for a television advert but uses a version of the music which it doesn’t have the rights for and faces action for financial redress. Similarly a publishing company involved in publishing educational textbooks is accused of infringing copyrights held by different photographers whose images are reproduced in the textbooks.
Employment Agencies
An employment consultant places temporary employees within a client’s finance department. The individuals commit fraud by making payments to third parties in respect of falsified bills resulting in a claim against the employment consultant.
Solicitors: tax advice
A firm of solicitors advises their client that share investments via an offshore trust would avoid Capital Gains Tax. Although this proves to be correct, the transfer of shares into the trust results in an unexpected Inheritance Tax liability - and an action against the solicitor by the client.
Solicitors: divorce
A firm of solicitors represents their client in divorce proceedings. Eventually the client alleges that the solicitors failed to act with reasonable skill and care in her claim for financial relief as a result of which she received significantly less than she was entitled to.
A firm of accountants advises their client about tax treatment of an employee fuel allowance scheme. The client alleges that the accountants omitted important information about administering the scheme and also failed to advise that the scheme in operation was not compliant with tax legislation.
Covered can cater for all types of businesses whom require Professional Indemnity cover. If you have any questions please contact us on 0845 862 2727.