Professional Indemnity Insurance Malaysia

What is insurance for professional indemnity?

 

When your business offers clients expert services, the stakes are very high. A minor work error could end up costing you a lot of money and hurting your reputation. To secure your business from any legal claims, you may consider to have professional indemnity insurance Malaysia.

 

One of your clients may hold you accountable and file a claim for damages if they feel they suffered financial losses as a result of your work or advise. If your company doesn’t have the appropriate insurance coverage, you’ll be responsible for paying the legal costs on your own.

 

Many independent contractors and freelancers who offer clients a professional service rely heavily on professional indemnity insurance Malaysia.

 

No matter how careful you are, errors can still occur. It can be intimidating and unsettling to be the target of legal action, especially if money is an issue. To secure their business, many independent contractors and freelancers turn to Hanhan for professional indemnity insurance.

 

Professional Indemnity insurance will pay for your legal defence and the cost of correcting the error if a customer you’ve worked for sues you for a monetary loss they claim they suffered as a result of an alleged error or negligence in the job you’ve accomplished for them.

 

If you already have professional indemnity insurance or are thinking about getting one, it is a good idea to be aware of the potential hazards that it does not protect you against.

 

Here is a list of the exclusions from Hanhan’s Professional Indemnity Insurance.

 

Penalties and fines

inclusive of punitive damages.

 

Sonic booms and radiation contamination

a loss brought on by:

 

• Ionizing radiations or radioactive pollution from any nuclear fuel or nuclear waste produced during the burning of nuclear fuel
• any explosive nuclear assembly’s or nuclear component’s radioactive poisonous, explosive, or other hazardous characteristics.
• pressure waves produced solely in Northern Ireland and the Republic of Ireland by aeroplanes and other aerial devices moving at sonic or supersonic speeds.
• riot, civil unrest, protesters, industrial or political unrest, vandals or mischievous people.

 

Threats of war and terrorism

 

a loss brought on by:

 

• either terrorism or war
• any action taken to prevent, quell, or control war or terrorism
• regardless of whether another cause or event contributed to the loss concurrently or in a different order, any unlawful or malicious act carried out intentionally by a person or persons acting on behalf of or in conjunction with any unlawful organisation
• terrorism-related contamination

 

Mould

a loss if it results from or is triggered by mould in any way.

 

Additional insurance

Where you have a right to compensation under another insurance policy, you won’t be covered.

 

We shall contribute more than the payment made by any other insurance if you have a right to payment under that insurance. If we also supply the other insurance, the amount we will pay for this insurance will be less than what we pay for the other insurance.

 

Lawful action

 

• where the claim is made in a legal proceeding before a court in Canada or the United States
• when a lawsuit for damages is filed to enforce a foreign judgement in a court in the United States or Canada.

 

Employers’ responsibility

Where your legal responsibility results from anything at all:

 

• any harm to a worker that arises from your employment of that worker
• a breach of your obligation as an employer to any worker or potential worker.

 

Insurance for employers’ liability would cover this.

 

Property

When your legal responsibility results in any way from your ownership, possession, or use of any:

 

• land
• buildings
• aircraft
• watercraft
• vehicle that moves mechanically.

 

Dishonest and nefarious behaviour

When a person commits a dishonest, fraudulent, criminal, or malicious act or omission after you have reason to believe they are doing so, you may be held legally liable.

 

Punishments or compensated damages

To pay fines or liquidated damages if your liability exceeds what would be applicable in the absence of the agreement, if your legal liability results from any agreement you have agreed into.

 

Joint endeavours

If you participate in a joint venture or consortia, your legal obligation will only be protected to the extent that it results from your own actions or inactions.

Situations known at the beginning

Any legal responsibility resulting from events that existed before the date this part of cover began will not be covered if you knew about them or should have known about them.

 

Backdated date

when your professional services rendered before the retroactive date put you in violation of the law.

 

Pollution

legal responsibility related to or resulting from pollution.

 

Design, build, or supply

 

Where your legal responsibility stems from or is related to:

 

• the provision of any hardware, other than when you offer guidance regarding its provision
• the endorsement of any product that differs from the manufacturer’s guidelines.

 

Bankruptcy or insolvency

 

when your bankruptcy or insolvency has any bearing on your legal liability.

 

Interest in money

 

A charge levelled at you by:

 

• any subsidiary, ultimate holding, or parent company
• any individual or organisation with a managerial, controlling, or financial interest in your business
• any business or organisation in which you, any of your partners, directors, or members have a financial, executive, or controlling interest.

 

Trading declines

Whenever you are held legally liable for trading losses, trading liabilities, or debts incurred by any business you manage or operate.

 

Officers and directors

If your legal responsibility is in any way related to or involves your performance or non-performance of your obligations as a director, officer, or employee of any firm.

 

Asbestos

 

When your legal responsibility for any of the following:

 

-manufacture

-mining

-processing

-distribution

-testing

-remediation

-removal

-storage

-disposal

 

Patent

claims alleging any type of patent infringement.

 

Coronavirus (Covid-19)

Any loss resulting from or resulting in any manner from the following

 

• Coronavirus (COVID-19)
• Coronavirus 2 and severe acute respiratory syndrome (SARS-CoV-2)
• a SARS-CoV-2 mutation or variant
• a risk of infection with any of the above, a threat of infection, or both.

 

If you are looking for this service, kindly contact with the insurance expert – HanHan

 

Last but not least, if you found this article useful, kindly forward it to your friends who might interested in this topic. Thanks for reading !

 

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