What does a professional indemnity policy for lawyers include?
Rashmi Sehgal, Delhi
Professional Indemnity policy issued to lawyers, advocates, solicitors and counsels is basically meant to cover liability falling on them as a result of errors and omissions committed by them while rendering professional service. The policy covers all sums, which the insured professional becomes legally liable to pay as damages to a third party in respect of any error and/or omission on his/her part committed while rendering professional services. Legal cost and expenses incurred in defence of the case, with the prior consent of the insurance company, are also payable, subject to the overall limit of indemnity selected. The policy, however, covers only the civil liability claims. Any liability arising out of any criminal act, or act committed in violation of any law, is not covered. The sum insured under the policy is referred to as the limit of liability in a professional indemnity policy. This limit is fixed per accident and per policy period, which is called any one accident limit and any one year limit, respectively.