Be Aware if your PI Insurance excludes Bodily Injury and/or Property Damage

Understand your Policy

Making sure that your insurance policy covers you adequately, particularly in the event that a claim is made against your professional services, is extremely important. This involves reading the terms and conditions, so you understand the extent of your policy coverage, and its limitations/exclusions.

Bodily Injury and/or Property Damage Exclusions

A major exclusion to look out for in Professional Indemnity Insurance policies is Bodily Injury and/or Property Damage Exclusions.

For the professions that don’t have much risk in this area, there is no reason for an exclusion to be under the policy. However, you must keep in mind that issues do arise that could be out of the ordinary.

If no cover is provided under your current policy, then there is no protection if a third party is injured or alleged to be injured during, or as a result of, the professional services you have provided for a fee.

For example, if as part of a claim, a third party alleges that they have suffered emotional distress (mental injury) and seeks compensation, there is no cover.

Doesn’t Public Liability Insurance Provide Cover?

Public Liability Insurance does not provide cover for bodily injury and/or property damage arising from the rendering of professional services. If you have Public Liability Insurance and believe that this will provide cover in the event that a third party is injured, you are wrong.

Any third party can make a claim against you if they have directly relied upon your advice and they have allegedly suffered a loss due to negligence of your professional services.