The policy covers the monetary amounts, including defense costs, the Insured is liable to pay to a third party following an action brought against him for any of the following:
- Negligent Act
- Negligent Error
- Negligent Omission
- Negligent Breach of Trust
- Negligent Breach of Professional Duty
- Negligent Misrepresentation
The Professional Indemnity Coverage is:
- On a claims Made Basis.
- Claims have to be brought against the assured during the period of the policy.
- The Acts to which the claim is related must be on or after the Retroactive Date.
- Covers any claim related to any circumstances known to the assured and advised to insurers during the policy period.
This Policy can be extended to include:
- Loss of documents
- Libel, Slander, Defamation
- Unfair competition
- Unintentional Breach of confidentiality
- Unintentional Breach of copyright or patent infringement
- Misstatement or misrepresentation
- Employers Practice Liability
- Dishonesty of employees
Further, the Policy will not cover:
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- Any incidents or circumstances known to the Insured at the inception of the Policy
- Any Wrongful Act, Error or Omission that took place prior to the Retroactive Date.
- Any Dishonest, fraudulent or malicious acts
- Contractual Liability unless attached in the absence of the contract.
- Liability for bodily injury or property damage
- Fines, Penalties, Punitive or Exemplary Damages
- Liability to shareholders
- Liability for financial risks (i.e. Depreciation in investments.)
- Liability in respect of seepage and pollution et al Claimants
- The above Principle of coverage/Indemnity applies to other classes of PI policies as well