Professional indemnity insurance

[Pramodh]

Hi All

I have been requested to take a Director role by one of the companies that I am advising. This advise may have an effect on the business focus of the company. 

 

I will would like to understand if the Professional indemnity insurance will cover this aspect and where can I get more information on this cover and compare providers? 

Thanks in advance for the   support!

[Norbert Bakker]

Hi Pramodh, and welcome at the Higherlevel forum

 

41 minuten geleden, Pramodh zei:

I will would like to understand if the Professional indemnity insurance will cover this aspect

 

It will as long as:

• you are hired as an independent contractor and not as an employee
• you have the right professional indemnity (PI) insurance that covers your activities
• the company has a directors and officers liability (D&O) insurance that covers any liabilities as director or you  have D&O liability risks also insurend on your PI

 

44 minuten geleden, Pramodh zei:

and where can I get more information on this cover

 

Any good insurance agent or broker

 

45 minuten geleden, Pramodh zei:

and compare providers? 

 

trust me: you shouldn't. Let the insurance agent or broker do the comparing as they know what is more important and what not. 

[Pramodh]

Hi Norbert, 

 

Thank you for taking your time and answering my question in detail. 

 

This is really helpful. 

Best 

Pramodh 

[Norbert Bakker]

3 minuten geleden, Pramodh zei:

Thank you for taking your time and answering my question in detail. 

 

One additional  advice: make sure you have a proper agreement which preferably:

 

1. limits your liability to direct damage(s) only 
2. limits your liability to a certain amount like € 500.000,- or € 1.000.000,- per occurrence. 

If your PI covers the limit mentioned under 2. per occurrence and twice this amount per year,  there are no unnecessary gaps between your maximum possible liability and your actual insurance cover 

[Jeroen Kisters RPLU ARe]

16 minuten geleden, Norbert Bakker zei:

or you  have D&O liability risks also insurend on your PI

 

or you take out a so called D&O side A-only in respect of your statutory duties if the company didn't take out a D&O (side-B).

 

You should also bear in mind that if your PI covers your D&O exposure, because the standard D&O exclusion in such a policy is put aside, it will be a light version of the D&O (side B). Very probably you'll be confronted with an exclusion in respect of owning shares, insolvency, legal, investment consultancy and a limitation in jurisdiction.

 

 

[Pramodh]

Thanks for the info, 

 

I have reached out to Gallagher for the quote and closure .  

 

[Norbert Bakker]

6 minuten geleden, Pramodh zei:

I have reached out to Gallagher for the quote and closure .  

 

AFAIK Gallagher has no brokerage presence in the Netherlands, only for reinsurance?

[Pramodh]

Would be great if you can suggest some other vendors . I just went with them as they are doing it for the company from Germany . Aon / Marsh did not respond 

[Norbert Bakker]

I'm an insurance broker myself, but currently not accepting new PI-clients 

You could try my former colleagues at  www.bavspecialist.nl