b'M E M B E R F E A T U R EProfessional Indemnity InsuranceThere has been littleinstallation to deliver a specified outputis to ultimately succeed. In the case historical appetite for buyingor solution, and the recipient feels thatof negligence, a failure to exercise Professional Indemnitythe system has failed to deliver, thenreasonable skill and care in the insurance from businessesyou can be held responsible for thedischarge of their services.operating in the liquid gascosts of replacement or improvements,A claim can be brought in contract or sector.but the likely shift towardsand in commercial installations, theretort. It is often more difficult to succeed hybrid heating & power solutions forcould be some loss of use/income costin a claim in tort as the following tests off-grid homes, allied to some changesimplications too. must be satisfied:in some Insurers policy wordingsYou might also find that on larger The claimant must prove that the means that installers and suppliersprojects, having the cover is aprofessional owed them a duty of might need to review whether they docontractual requirement. carein fact need the cover.The claimant must prove that the What about my Publicprofessional has breached that dutyWhat is ProfessionalLiability Insurance?The claimant has suffered financial Indemnity Insurance? Whilst some Public Liability (PL)loss as a direct result of that breach.Professional Indemnity insurance helpspolicies do provide cover for the costsIf an allegation of negligence is upheld, protect you against claims for lossassociated with professional services,the professional is likely to be liable for:or damage made by clients or thirdmany will have exclusions aroundThe losses incurred by the claimant parties, as a result of the impact ofthis sort of activity, even if you dontwhich arise as a reasonably foreseeable negligent professional services youcharge a fee for these professionalconsequence of the professionals provided or negligent advice youservices. actions. The claimants legal costs and offered. these can be substantial and can often The policy trigger could also bebe larger than the loss.Compensation claims can be broughtpotentially challenging, as these against you even if you provided apolicies provide indemnity against theYoull note we said earlier that service or offered advice for free! policyholders legal liability arising fromnegligence must be proven for the damage to third party property, orclaim to succeed.Theres nothing to Who needs to buy it? injury to third parties.stop allegations being made against Simply put, almost any businessyou, and the policy can cover legal that is providing design, adviceIf no-one is injured and theres been noand other costs and expenses incurred or specifications as part of theirdamage to property (but the systemin the defence of any claim. So whilst service, where the business could beis not fit for purpose) then the policyyou might have not actually been considered an expert in that field. may not respond.negligent you can be covered for the This is especially important whencosts relating to the defence against an dealing with consumers, where theA further complication could arise if theallegation.expectation is that they will have nextspecification or design you created (i.e. to no knowledge of the systems youprofessional services) led directly toWhat should I do?are proposing, so they are relying onphysical injury or property damage ifAs ever, we recommend speaking to your expertise almost entirely. there is an absolute exclusion on claimsyour broker or insurer to establish if the Even if you dont undertake the designarising from professional services. products, systems or installations you yourselves, or if you work to a designprovide have a professional services created by another business or theresClaims aspect that could lead to claims, and no design brief at all, then there are stillAny potential claimant must provehow those claims would be handled by areas where claims could arise.negligence or a breach of duty onyour existing insurance arrangements.If you are asked to quote on a systemthe professionals behalf if the claims liquidgasuk.org 39'