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18 Cards in this Set
- Front
- Back
What does PII stand for? |
Professional Indemnity Insurance |
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What is the purpose of Professional Indemnity Insurance? |
To provide financial cover in the event a client suffers financial loss as a result of a breach of professional duty e.g. neglect, error or omission |
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What benefits does it provide for the professional? |
The professional is protected from financial loss |
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What benefits does it provide for the client? |
Can recover their financial loss |
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On what basis is it underwritten in the UK? |
On a claims made basis |
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What does this mean? |
That it is the insurance policy that is in place at the time the breach is discovered that is claimed under NOT the insurance policy in place when the breach was made
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Tell me about Merrett v Babb? |
Court case in 2001 |
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What is the significance of it? |
Considered if a professional employer was vulnerable to claims brought directly against them for advice given on behalf of their employers |
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How long should run off cover be in place? |
Depends on the type of contracts the professional has been involved with |
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What are the requirements regarding PI by the RICS? |
Must be made on an ‘each and every’ claim basis |
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What are the minimum levels of indemnity? |
This depends on the firm’s turnover |
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What are the maximum levels of uninsured excess? |
Depends on the level of indemnity |
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What if the loss exceeds the cover provided by the PI insurance? |
The professional / firm is liable for the difference – in assets etc |
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What measures should be taken to try and avoid PI claims? |
Keep full and detailed records of meetings, conversations etc |
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If you made a mistake in your cost plan what would your insurance company expect? |
For you to notify them and comply with any conditions / procedures set out in the insurance policy |
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Are you familiar with the term limit of liability and where would it be used? |
Limit of liability is used to place a cap on the level of exposure a business signs up to. |
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How would a net contributions clause affect this? |
Net contribution clauses seek to ensure that the consultant’s liability is only for the loss they cause |
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If an estimate prepared by a QS is incorrect can the client claim damages? |
Not necessary |