An outline of the law relating to claims against professionals such as solicitors, accountants and valuers. The note explains the requirements for bringing a claim in contract or tort. It considers the limits on the recovery of damages by causation, mitigation, the application of the SAAMCO principle, contributory negligence, contribution and the use of exclusion clauses by professionals to limit liability.
This note considers the scope of cover provided by a typical professional indemnity insurance policy, including the type of liabilities covered, the matters that may be excluded and the manner in which the amount of cover is determined under the policy. It also explains the claim notification requirements usually found in the policy, the insurer's liability for defence costs and its role in handling the underlying claim against the insured.