Professional Indemnity Insurance

The limit of indemnity provided by the insurers may not be adequate.
Insurers may refuse to deal with a claim due to breach of policy conditions i.e. late notification.
The onus is on the building owner to prove that the professional team have been negligent.
Some policies are written with a limit of indemnity in total in the period

All regulated insurance activity is conducted by Oval Insurance Broking Limited
Oval Insurance Broking Limited is authorised and regulated by the Financial Services Authority.
Registered Office Address: 9 South Parade, Wakefield, WF1 1LR. Registered in England No. 01195184
© The Oval group 2008

of insurance – if other claims have occurred in the policy year, the limit of indemnity could be exhausted.

Policy cover only usually applies for a limited number of assignments.
You may be required to litigate which could be a costly and lengthy process.
Cover will only be provided if the claim is brought whilst the policy is in force – if the policy is lapsed or cancelled insurers will not deal with any claims subsequently notified, irrespective of when their client was negligent.
The Professional Indemnity insurers primary concern is to defend their clients position/interests – not to help the building owner to repair his building.

Problems with relying on Professional Indemnity insurance

Relying on the Professional Indemnity insurance of the designer could have the following disadvantages for the building owner: