All insurance policies contain some exclusions, including professional indemnity policies. Unlike the Abacus policy arranged with Lloyds of London, some Professional Indemnity policies contain exclusions which do not provide optimal cover for the insured. Below are examples of some of those exclusions which are not part of the Abacus policy:
Intellectual Property
Damages resulting from any claim for any unintentional infringement of any intellectual property right of any third party, other than patents and trade secrets.
Assumed Liability
Any claim arising in consequence of any duty or obligation assumed by the Insured by way of warranty, guarantee, indemnity, contract or agreement, unless the Insured would have incurred the liability in the absence of such warranty, guarantee, indemnity, contract or agreement.
Conflict of Interest
Any claim against the Insured directly or indirectly based upon, attributable to, or in consequence of a failure to declare a conflict of interest.
Accountants considering quotations for PI insurance should make sure that the policy wording does not contain any of the exclusions described above.
