The insured events
A South African PI wording responds to a civil claim first made against you during the period of insurance, arising from a professional service you provided:
- Professional negligence — the work fell below reasonable standard.
- Errors and omissions — something wrong, or something left out.
- Breach of professional duty, including implied duties in your contract.
- Unintentional breach of confidentiality or IP infringement.
- Defamation arising from professional communications.
- Loss, damage or corruption of client documents and data in your care.
The exclusions that catch people out
Read these before you assume you are covered:
- Contractual penalties and liquidated damages you agreed to.
- Refund of your own fees or re-performance of the work.
- Bodily injury and property damage — that is public liability.
- First-party cyber costs such as ransomware and breach response.
- Anything you knew about before the policy incepted.
Extensions worth buying
Retroactive cover for past work, run-off cover after an engagement or the business ends, worldwide jurisdiction if you serve offshore clients, and defence costs in addition to the limit rather than eroding it.