Common misconception is that Professional Indemnity Liability policies provide the same coverage as PI (Professional Indemnity) policies. They are not standard and should be tailored to your specific needs.
Larger companies are often better equipped to understand their policy differences and exposures. They also know that not all policies are created equal. Often, it is the little guy who faces difficulties. You can find more information through a guide to PI insurance in Hong Kong.
This article will provide a summary of the coverage options to help you make informed decisions when buying PI insurance. Although this list is not exhaustive, it will help you to compare key elements.
The most significant difference between PI policies and other insurance policies is their wording. You can refer to the insurance clause to find out what basis you are covered.
An expanded insuring clause would respond to claims of an act, error, or omission in professional services. This would remove the negligence requirement. It would also respond to contractual liabilities and statutory violations, as well as equitable breaches.
No matter what policy type you have, whether it is civil liability or negligence, PI policies only cover claims that arise from the professional services provided. The schedule will either include a description of the services or it will be a term in the policy. Industry specific words are common.
A common reason a claim is declined is the fact that it did not arise in "connection to the Insured's Business", according to the policy. It is important to make sure that the description accurately and fully captures the services you provide and those you will provide during the policy period.