The modern term for a "Professional" can be considered to be any person who offers "specialist advice or service" which includes a myriad of new and emerging disciplines. Business consultants, IT consultants, PR firms, soil analysts, environmental engineers (and so the list continues), could all be included in this new term as "Professionals".
These businesses provide advice and/or carry out a specialist service on behalf of clients, and as such they owe a duty of care to that client - they may be found legally liable when the advice causes a problem for the client.
Any professional person must exercise whatever degree of skill and care is reasonable expected of any competent practitioner in that profession at the time. If that person carries out a service or gives advice negligently, they can be held liable for the consequences.
Normally, professionals would enter into a contract with a client to give advice or provide a service and liability would arise where there was a breach of the contract terms. For legal liability to be established "The Professional" must owe a duty of care and that a breach of that duty has caused a loss which would have been reasonably foreseeable.
How does liability arise?
Breach of duty - Most PI policies will provide indemnity for breach of duty by reason of neglect, error omissions committed in the conduct of professional business reported during the period of insurance.
Civil liability - some policies provide cover for "any civil liability whatsoever" (excluding employers and public liability, which should be specifically covered elsewhere)
Breach of contractual liability not caused by negligence - this type of liability goes beyond what one would normally expect in law (e.g. late delivery penalties) and are therefore normally excluded from PI policies
Contractual liability - Dependent on the profession the PI insurer may offer to cover an element of contractual exposure in order to meet he insured's basic professional needs.
Legal costs - the costs of investigation, defence, court costs are normally included in PI policies subject to prior consent.
For further information on PI cover please contact Duncan Weir on 0800 281 453
