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.
An outline of the law of professional negligence. This note considers: The requirements for claims in contract and tort. The application of the SAAMCO principle. The Bolam test. Contributory negligence. Contribution. The use by professionals of exclusion clauses to limit liability.