General Practice Insurance

General Practice Insurances

• Fire
• Loss of profits
• Burglary and larceny
• Electronic equipment
• Motor vehicles
• Worker's compensation
• Fidelity guarantee
• Travel

Professional Indemity

Under a professional indemnity policy the practice is indemnified against claims for legal liability arising from breach of professional duty owed in contract or otherwise, due to a negligent act, error or omission. Legal defence costs incurred with the consent of the insurer are also covered.

A practice may be held directly responsible for its own actions and those of its employees, agents or subconsultants and joint venture partners.

Insurance taken out by a professional practice against the risk of paying for claims arising from breach of professional duty by reason of negligence or other specified causes. The insurance in any particular case depends on the policy and is usually wide enough to embrace (1) acts of employees as well as principals where the employees act in the course of their employment, (2) duty in contract, to clients, and (3) duty in tort, to others. Cover is provided for the ususal activities of particular classes of practices.

Public Liability

This insurance, also called ‘public risk’ insurance, is insurance against a person’s liabilities in tort, arising out of the person’s occupation, activities, ownership of premises and use of premises. It indemnifies the practice against all sums for which the practice becomes legally liable to pay damages in respect of:

• accidental bodily injury to persons
• accidental loss or damage to property happening in connection with the conduct of the business and/or ownership of premises.

Claims, arising out of a breach of the duty owed in the professional capacity of the practice and its agents, are excluded.

Available extensions under the policy are: indemnity of principals, indemnity of directors and executives, cross liabilities (where the policy is in joint names), property owner’s liability, tenancy liability, carpark liability and social activities.

Directors Insurance

• Personal accident and illness
• Disability insurance
• Key man
• Director's liability

Obtaining insurance advice

An architect should never claim to be an expert in insurance. Informed advice on insurance matters can be readily obtained from:

• an insurance company directly. Sales representatives can only speak for their own companies and it therefore usually pays to consult more than one company before making decisions
• an insurance broker, who can advise on what the broader market has to offer. A broker acting as agent for a person needing insurance can arrange a contract of insurance between that person and a suitable company or companies. The broker should also be covered by professional indemnity insurance in case his or her advice proves to be negligent.

Architect's Professional Risk Services is an insurance broker able to give specialised advice to architects on a variety of insurance needs and can also obtain quotes and arrange insurances.

Making a claim

Certain steps are always essential where a claim is likely to be made under an insurance policy:

• the insured must take reasonable precautions to prevent further loss or damage
• if an unlawful act is suspected, e.g. burglary, vandalism or criminal activity, the police must be notified promptly
• the insurance broker or insurer must be notified as soon as possible.