What does “aggregate” vs. “any one loss” mean?

An aggregate is the maximum amount an insurer will pay per insurance period. Any one loss / each and every claim allows for an unlimited number of claims, where the selected amount of cover is available per claim rather than per year.

What is a retroactive date?

Claims first made against the insured arising from work performed on or after the retroactive date as it appears on the policy schedule will be indemnified in terms of the policy. This date is normally fixed as being the date on which the cover was first taken out and would remain unaltered for the purposes of all future renewals. When cover is first taken, additional retroactive cover may be offered subject to certain conditions and additional premiums, but will not cover any known or pre-existing claims.

Can I be held liable for work I have subcontracted to someone else?

Yes, you will be held liable for a subcontractor's work, as you have appointed them and are responsible for what they do for you and consequently your client. As your client has no contract with them, your client would hold you liable for any damage the subcontractor causes. Your PI policy can respond to this liability if it is a legal liability policy and you include a subcontractor's extension to include cover for your liability flowing from such relationships. Very important, however, is that your subcontractors themselves do not have cover under your policy and they will need their own policy to cover them when you counter-claim against them for the damages they have caused to your client.

I am entering into a Joint Venture, am I covered under my PI?

Yes, you can be covered under your PI if you include a Joint Ventures extension. You will be covered for your participation in the Joint Venture and it must be made clear that the Joint Venture as a group is not covered by your policy.

Do I have enough cover or not? What is enough cover?

It is impossible to scientifically calculate the correct value of cover one should procure for PI insurance, however, there are several factors to consider when deciding on a Limit of Indemnity, some of these are: • Do you limit your liability in the contract? • Does your client indemnify you for third-party claims? • Do your clients require particular PI limits? • What is the size of the total project I am working on? • What is reasonably and most likely the single biggest loss you could cause? • What is affordable for you?

iTOO Professional Indemnity Insurance

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Questions about Professional Indemnity Insurance?

Call Fiso Thusini on
087 703 0933 or email
fisot@itoo.co.za

Call Angie Dayah on
082 371 8525 or email
anjanad@itoo.co.za

Call Claims on
086 100 4866 or email
itoonewclaims@itoo.co.za