Professional Indemnity Insurance

What is Professional Indemnity Insurance and why do you need it?

Professional Indemnity Insurance is designed to provide coverage in respect of legal liability arising from the conduct of professional practice or business.

The bespoke LPMS Policy is tailored to specifically provide coverage for:

  • Settlements by or judgements against the business and/or professional person arising out of negligent advice or services.
  • Legal costs and expenses associated with the defence of legal action.

In addition Extensions to the core coverage is provided for:

  • Defamation
  • Employee Dishonesty
  • Quasi-Judicial Representation Costs
  • Weather Tightness / Wet Building
  • Loss of Documents
  • Cadastral Surveys – Prior practice cover for Employees and Principals

Optional Extension more specific to your activities are available for:

  • Loss of Documents
  • Cadastral Surveys – Prior practice cover for Employees and Principals
     

Important fine print about this policy:

“Subsection (1) of the Cadastral Survey Act 2002 states that if an error is found in a cadastral survey dataset affecting any title under the Land Transfer Act 1952 or tenure under any other Act, the Surveyor General may, in writing, require the cadastral surveyor responsible for the error to undertake the work necessary to correct the error.”

Under the Act, the Surveyor is personally responsible for the cadastral survey, not necessarily the firm or company for whom the Surveyor works or may have worked for in the past.

The LPMS Professional Indemnity Insurance policy responds on behalf of the current or former Partners, Directors and Employees, subject of course, to its terms conditions and limitations to a legal liability for claims for damages by parties to whom a duty of care is owed that may have suffered a proven loss as the result of an erroneous survey. This is provided that a Member Firm continues to take out Professional Indemnity Insurance under the LPMS Scheme. The Surveyor's own costs to correct any erroneous survey will, in any event, of course have to be met by the Surveyor.

A Partner, Director or Employee will not, however, continue to be covered, if for instance the firm does not for some reason have a current policy when a circumstance that may give rise to a Claim is first discovered or a Claim is first made. Alternately, if a firm ceases practice and does not take out the appropriate “Run Off” cover, then the former Partners, Directors or Employees will not have insurance for claims relating to past work.

LPMS provides an Extension of cover for any Partner, Director or Employee who has no other recourse to “Run-Off” cover from their work with a former practice in respect of S52 claims. This Extension is optional and can be applied for by the Member Firm.

The limit of indemnity under the Extension is $250,000 for any one claim and in the aggregate for all claims during the Period of Insurance, with a costs inclusive Deductible of $5,000.