Professional indemnity cover exclusions

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Professional indemnity (PI) insurance does not provide (and is not intended to provide) complete protection against professional risks. When a claim is covered by your PI policy, additional costs could be incurred as follows:

• The policy excess (likely to be several thousand dollars or more).
• If your policy limit is defined as inclusive of costs, costs form part of the policy limit and you could incur additional costs in defending a claim. (If your policy limit is defined as exclusive of costs or costs in addition, any costs incurred in defending a PI claim will be paid by the insurer in addition to the policy limit).
• Liability under some contract clauses (such as warranties and indemnities) that is typically excluded from cover. (You should discuss coverage options with your broker).
• Liability for claims that are excluded under your PI policy (noted on the policy schedule or in the policy wording).

Page contents

• Exclusions
• Common exclusions
• Proximity or related entity exclusion
• Uninsured indemnity clauses, (and others) in conditions of engagement
• Risk of limited liability for subconsultants and others
• Less common exclusions
• Uninsured risks in AS 4122