Solicitors in Swansea.

Insurance Law FAQs

What is professional indemnity insurance?

Professional indemnity insurance is taken out by persons providing a service who wish to protect themselves against litigation.  If you provide a negligent level of service, for example, then the claim will lie against your insurer rather than yourself.

Some professional bodies, (for example, accountancy) require their members to have professional indemnity insurance.  You should double-check with the body which regulates your profession.

Can persons responsible for running a company be covered by insurance?

If directors and other responsible for running a company cause loss to the company as a result of lack of care or skill, they can be personally sued.  However, to protect directors from being sued, the company can take out directors’ and officers’ insurance.

What is public liability insurance?

Public liability insurance covers you against legal action against you taken out by members of the public who suffer some sort of loss on your premises (such as personal injury).  Public liability insurance will not only cover your legal costs, it will also cover any damages that have been awarded against you.

Can I protect myself against certain types of litigation?

Yes, there are policies on the market that will protect you against certain types of litigation.  There are also policies which will provide you with general coverage against a whole range of legal actions, such as employment law disputes and disputes with HM Revenue and Customs.

What is legal expenses insurance?

Legal expenses insurance will cover your legal expenses in the event you are sued.  They will also provide cover for you where you want to bring a legal action yourself.  Examples of actions that may be covered include action against a former employee for breaching a restrictive covenant or action against a supplier for breaching a contract.

In what circumstances will legal expenses insurance not provide me with cover?

Generally speaking, you will not be provided with cover where:

• There is no reasonable prospect of your case being successful.
• Your claim or a claim against you is brought within the first 30 days of cover.
• For the sale or purchase of goods and services, there may be a policy excess.
• The case against you is for professional negligence.
• You are charged with a motoring offence.
• For fines imposed on you by a criminal court.
• You haven’t first contacted your insurance provider to find out whether you will be given cover for bringing a claim.

Apologies for the inconvenience, this page is being redeveloped and will be back online shortly. Please return to Swansea legal services in the meantime.