This insurance helps protect professional people against legal liability to pay damages and costs to persons sustaining loss through a breach of professional duty.
In brief this means that someone alleges you have failed to deliver your services properly and that they have had a cost to either put this right or to pay a third party for your allegedly defective service.
- A client is sued by their client because they have not undertaken a process correctly that you trained them to do. The client then sues you.
- You provide some advice on compliance which proves to be incorrect and the client sues you for the financial consequences of their action in handling this incorrectly.
- You undertake a review of a client’s regulatory procedures. The client subsequently has an investigation by a regulator who identify a breach in their rules. The client pursues you for alleged poor advice and recovery of their financial loss.
- You carry out complaints handling work for a client and fail to escalate a potentially serious matter which subsequently results in a substantial payment by the client to their customer. The client sues you for the loss they incur.