Professional Indemnity insurance is designed to indemnify the insured professional against financial arising out of a negligent act, error, or omission in the performance of your duties as a professional, which causes a loss to be suffered by your client. This is a benefit that comes only when you are a Saiba member and a Business Accountant in Practice (BAP)(SA) designation holder.
Here are some of the frequently asked questions about PI Insurance:
Why should I apply for PI Insurance?
In today’s service-driven economy, it is crucial for professionals, and those providing specialist advice, to employ specialised knowledge, skill, and care in their business dealings with their clients. These professionals must exercise a degree of care and skill which is reasonably expected of any competent practitioner in their profession.
If a person provides advice or a service to another and carries that work out negligently, they could be held legally liable for the consequences thereof. Liability can arise because there has been a breach of duty of care. Professionals who are often exposed to litigation. Many of the suits brought against these professionals are because of damages sustained due to the professional’s failure to perform according to the generally accepted standards in their fields.
Increased consumer awareness, which is largely as a result of new legislation protecting consumers’ rights, coupled with tough economic conditions, is resulting in our society gradually becoming more litigious. Even where there has been no proven error resulting in liability, a third party may initiate a suit against the professional purely as a result of a project not being successful. Defending actions in court could prove to be time-consuming and expensive. In the event that the professional is found guilty, the costs related thereto, which may include reimbursement of the litigant’s expenses, may be an unaffordable financial burden.
How do I apply for the insurance?
As a Saiba member, you automatically qualify for Professional Indemnity insurance at a limit of R4 000 000. You can, however, opt to increase your cover limit based on the needs of your business by contacting Taisa Bezuidenhout at firstname.lastname@example.org
The policy covers the paid-up member of Saiba. The Business Accountants in Practice (BAP) designation entitles a member to apply. The premium is included in the membership fee you pay to Saiba. Your policy runs for 12 months from inception and renews each year. At renewal, you are required to submit a proposal to the insurer on the state of your business activities.
Can Saiba provide the member with a PI Insurance quotation?
As part of your membership, you are already included in the Saiba insurance scheme, however, if you would like to increase your limits and take out additional insurance you can do this with the SAIBA approved broker.
Can a non-Saiba member apply for the insurance?
Non-members can also obtain PI insurance outside of the scheme, but you do not qualify for the scheme rates. PIFRS (PI Financial Risk Services) will assist with obtaining a quotation on your behalf.
How can I claim my PI Insurance?
In the event that you have been found negligent due to advice given or professional errors made you need to inform your PI broker as soon as you become aware of an incident that could potentially lead to a loss. We will then assist you with the claim process every step of the way.
To know more or apply for PI Insurance, contact your personal portfolio consultant and they will assist you further.