Professional Indemnity Insurance

Professional Indemnity

Professional Indemnity insurance is to protect those professionals e.g. bankers, lawyers, architects, accountants, etc., who might negligently fail to exercise reasonable care as other professionals and causing loss or damage to others.

Example of Claim

According to Asian Casualty Report, A property investor who bought a waterfront villa for about SGD 14 million (USD 11.2 million) in March 2012 demands repairs worth SGD 1.8 million (USD 1.4 million) from the developer. The owner claims that there were defects on bathroom doors, water leakages in the living area, the kitchen, most of the rooms and the basement garage, patchy wall paintwork, and scratches on the timber floor and glass panes.

In December 2012 the developer offered SGD 110,000 (USD 88,341) for enhancement works and SGD 20,000 (USD 16,062) for fixing defects, but the owner declined. He fears that the problems will reappear if the developing company does the repairs itself. The developer claims that the owner’s requests were mostly, if not completely, non-contractual.

Source: Straits Times, 13 September 2013