Professional Indemnity Insurance & Surety Bonds | Shackleton Risk. How do I apply for a license as a Business Rescue Practitioner? What is Professional Indemnity Insurance? What is Professional Indemnity Insurance and how does it work? Professional Indemnity Insurance covers our clients for a 3rd party claim made against them, as a direct result of their own negligence. The PI cover that we offer to our attorney clients is a Top-up cover, over and above the cover that they receive from the Attorneys Insurance Indemnity Fund. The Attorneys Indemnity fund is the fund that all attorneys are part of as a result of their registration as attorney firms, and the fact that they are attorneys.
This fund grants the attorneys Professional Indemnity cover of anything between R1.562 million and R3 125 million Rand depending on the number of Directors the firm has. As mentioned our Professional Indemnity cover is the top-up cover over and above this. Professional Indemnity insurance has to do with understanding the risks inherent in working as a professional. Insurance Cover Questions Asked - Shackleton Risk Management. 1. Why do I need a professional indemnity policy? Professional Indemnity policies provide cover to professionals that offer advice or professional services to the public. Clients that seek advice from professionals expect the advice they are given to be accurate and appropriate for their needs. If it is not, the client may hold the professional firm liable for any loses it has suffered as a result of the incorrect advice. 2.
You should take out a PI policy out the day you start operating a practice which performs professional services or gives professional advice to the public. 3.What If I don’t have the money right now, can I take out a PI policy out later when I do have the money to pay for it? Yes you may approach an Insurer when you have the money however you must realise that you won’t enjoy cover through your PI Insurer until the policy start date (inception date) unless you ask for a retroactive date to cover historical work performed by you and other employees of the firm. 4. 5.
Where must deceased estates be reported? Shackleton Risk Management. Wherever the deceased was living in the Republic of South Africa, the estate should be reported to the Master of the High Court in that jurisdiction. In other words if the deceased was living in that area for 12 months prior to his/her death, then the Master’s office overseeing estates in that region should open an estate file. If the deceased was not living in the Republic of South Africa at the time of his/her death, the estate may be reported to any Master of the High Court, provided it is reported to only one Master and not two or three as this will create unnecessary duplication of files.
If this is the case, you will need to file an affidavit (in addition to the normal documents which SRM can advise you on) stating that letters of executorship have not already been granted by any other Master of the High Court in the Republic of South Africa. Magistrates’ Offices are also designated service points for the Master of the High Court and estates can be reported there too. Why the need for TOP UP insurance? - Shackleton Risk Management. For law firms and sole practitioners alike, it is critical that the limit of cover offered under your Professional Indemnity insurance policy is adequate for your business. We strongly recommend you review your limit to determine whether an increase in cover, beyond what may be offered by your professional indemnity fund. For attorneys this is Legal Practitioners Indemnity Insurance Fund which offers a primary layer of insurance to its members in possession of a valid fidelity fund certificate. So exactly what considerations should be taken into account to determine the correct limit of indemnity ?
You should consider the size of your firm, the areas of law which you practice, and the minimum limits of indemnity required by banks on whose panel you may serve. In some cases, tenders and service level agreements may dictate the limit of indemnity to be held by the firm. o Your firm is faced with more than one claim in a year. o The type of work conducted is prone to errors. What is Professional Indemnity Insurance?