Professional Liability / PI Insurance

Servca are specialists in Professional Indemnity insurance, also often known as Errors & Omissions (E&O).

As an independent Lloyd’s Broker, we have access to the whole of market and to over 60 Lloyd’s syndicates that underwrite PI risks globally, allowing us to syndicate complex, distressed individual risks, binders and facilities. 

As an industry specialist, we cover all professions and focus on trade groups that are often considered ‘non-standard’, or ‘distressed’ due to previous claims or any unusual exposures/limits that traditional insurers would not offer cover on.

For our wholesale PI/E&O facility, we operate on a minimum gross premium of 5,000 GBP or currency equivalent per risk. 

We understand the complexities of non-standard and ‘distressed’ professional indemnity risks. Arranging appropriate terms may not be available from traditional insurers and MGAs, which we why we are able to place risks into Lloyd’s market where we often syndicate risks with multiple syndicates under our in-house Lloyd’s facilities; with bespoke policy wordings and clauses to meet your client’s requirements. 

As an independent Lloyd’s Broker, we are dedicated to supporting our partner brokers in placing all types of professional indemnity risks, ensuring that you can win, renew and retain your client year after year. 

Risks We Can Help You With 

  • All types of non-standard, distressed (and standard) Professional Indemnity/E&O risks;
  • ALL trade groups catered for – from Financial Institutions or Nuclear Engineers;
  • Risks with USA exposure;
  • Risks with previous claims/conditions;
  • Professional Indemnity limits of up to GBP/USD 100m (or currency equivalent);
  • Excess Layer options for Professional Indemnity risks seeking higher limits (for one-off projects)
  • Schemes, Facilities & Binders

Why Work With Servca?

  • We are Professional Indemnity experts, our team is led by a management team of over 50 years combined experience in the Lloyd’s & London Market;
  • We have market access to every single Professional Indemnity syndicate in Lloyd’s and London market;
  • We assess and highlight non-obvious exposures for you;
  • We advise on extensions of cover to limit other exposures e.g. Civil Liability, Breach of Duty, Contractual Liability, Cyber, Public Liability, Employers Liability and CGL;
  • We can provide risk management strategies for your clients;
  • We communicate with you 24 hours a day, 7 days a week – irrespective of where you are in the world, offering market feedback to you and your clients.
  • We work on dedicated turnaround times, which are on average 24 hours.

Professional Indemnity Clauses & Covers:

Civil Liability

Professional Indemnity cover will generally offer a wider wording to cover ‘Civil Liability’. Most PI policies now include libel and slander as an extension to the normal wording, to be upon a civil liability wording means that the insured is covered for breach of contract, libel and slander as standard. As the Civil Liability clause is so wide, typically insurers may include exclusion to exclude exposures that should be covered elsewhere. It is therefore imperative that you fully understand the risk and the policy wordings being offered to you. As a specialist in PI, we are able to offer assistance, advice and placement strategies to ensure that your client has the best level of protection at the most competitive premiums. 

Breach of Duty

The purpose of a basic Professional Indemnity (PI) policy is to indemnify the insured in the instance when a loss arises from any claim of ‘Breach of Duty’ during the policy period due to neglect, error or omission whilst carrying out their business activities.

Breach of Contractual Liability

This is often excluded from PI policies and covers losses such as liquidated damages (such as late delivery penalties) or accepting liability for unexpected economic (business interruption). Often, clauses such as these need to be requested due to the complexities. 

Contractual Liability

This is commonly found in Design & Construction professions, as the insurance would offer cover for any contractual exposure that arises through negligence during the contractual agreement. 

Legal Costs

These are typically covered by most PI policies, up to a certain limit and will cover the costs of investigation, defence and settlement of claims. These costs associated generally cover lawyers for investigation and defence; loss adjusters; expert witnesses.

Understanding Professional Indemnity Cover & ‘Claims Made’ Policy Wordings:

Most Professional Indemnity and Medical Malpractice is written on a ‘claims made’ basis, which means that the policy covers claims that are made (and reported to insurers) from when the incident supposedly occurred but using the current policy cover. (This is why it is essential for the Insured to sign and agree any claims declarations and in some instances where we are required to obtain Claim Summaries from previous insurers). 

A claim is generally notifiable under a PI policy when the insured first becomes aware of a circumstance that could lead to a claim (be it fault or non-fault); this could be anything ranging from a disagreement or dispute to the insured receiving a written statement of a claim. 

The interpretation of when this situation occurs is the source of frequent policy disputes between the insurer and insured. 

Professional Indemnity ‘Claims Made’ policies are:

  • A claim might be made upon a current policy but in respect of a negligent act that might have historically occurred.
  • Protects the insured against the loss of value due to fluctuating inflation rates. In respect of areas such as the construction industry, “latent defects”, might lead to claims many years after an act of neglect.
  • It protects the insurer against the effects of legislative changes, claims made in line with newly acquired knowledge or inflationary awards. 
  • If the policy lapses for any reason, there is normally no cover thereafter for any claims that might arise, regardless of when the alleged neglect might have occurred.