Professional Indemnity Insurance
Professional Indemnity cover was, and has developed by the insurance market to protect their policyholders for financial loss claims brought against their policyholder clients by people affected by their actions. In other words it was to cover the policyholder for claims by third parties for the financial consequences of negligent advice or service delivered by the policyholder.
Professional indemnity insurance was a cover available long before computers and cyber crime existed. The covers were never intended to pick up the type of claims that policyholders can now face as a result of a cyber incident and although there can be some potential for a professional indemnity to respond to a third party claim involving a cyber event , the likelihood of the policy responding under any of its headings is almost nil.
To have cover for the scenarios faced and potential claims presented a policyholder really needs to have either a ‘Combined Professional Indemnity & Cyber policy’ purchased or a separate Professional Indemnity and Stand Alone Cyber cover ( ideally placed with the same insurer , to avoid gaps and policy cover crossover arguments )
Cyber Insurance policies cover more than third party claims so that they are also designed to provide ( apart from providing cover for claims by third parties for data breaches both personal & business ) assistance in dealing with Data protections commissioners /PR associated with Data breach / costs of informing affected clients and also damage to own computer system as a result of attack and in some cases loss of profits associated with a cyber attack. Cyber policies also will give clients access to expert advisors in the event of a data breach or cyber attack. None of these covers will come with a traditional Professional Indemnity policy .
Combined Professional Indemnity and Cyber Cover
Certain occupations are very suitable for combined Professional Indemnity and Cyber covers and IT professional indemnity is a one area we have seen a growth in insurers quoting the combined IT professional Indemnity & Cyber insurance.
For more on cyber or professional indemnity please call our team on 091- 563518.