Professional Indemnity

Your MAPFRE Middlesea Professional Indemnity Insurance policy includes a wide protection for professionals who provide a service such as accountants and auditors; lawyers and notaries; architects and civil engineers; electrical and mechanical engineers; and medical practitioners. The policy covers the insured professionals for claims made against them for injury, loss or damage, as a result of any act, mistake or omission while providing their services.

• We will cover any claim made against accountants and auditors for actual or alleged failures unintentionally and in good faith to account for monies received during the conduct of their profession.
• We will cover all losses which the policyholders, in their capacity as registrars, may sustain, by reason of fraudulent or erroneous entries in any share or debenture register or record, relative to the registration, holding, transfer or transmission of any document.
• We will indemnify architects and civil engineers for any amount which they may become legally liable to pay proceeding from any claim made against them by reason of any, error or omission happened in good faith in connection with their professional activity.
• We will indemnify architects and civil engineers for any damages and claims expenses which exceed the amount stated as the excess in the schedule, which arise from any act, error or omission of any named employees of the firm/partnership, provided always that no indemnity will be afforded to any person committing or condoning such dishonest or fraudulent act or omission.
• We will cover lawyers for defence costs where such costs have been incurred with the consent of us. Such defence costs are payable in addition to the limit of indemnity with the maximum liability of a 20 per cent of the limit of indemnity shown in the schedule.
• We will indemnify medical practitioners for any sum which they may become legally liable to pay arising from any claim or claims made against them for any bodily injury, mental injury, illness, disease or death of any patient, caused by any act, error or omission committed by the insured, in or about the conduct of the insured’s occupation or business, as stated in the Proposal or Declaration or Good Samaritan Acts.

This insurance protects professionals such as accountants, medical practitioners, lawyers or architects.

We will cover any claim or claims made against accountants and auditors during the period specified in the policy for any actual or alleged act, error or omission, for any breach of contract, any violation of warranty of authority, or any breach in trust committed in good faith.

We will indemnify accountants and auditors up to the sum stated in the schedule for any loss or losses, they shall discover they have sustained and their legal liability arising from any claim made against them during the period specified in the policy. We will cover all losses which the policyholders, in their capacity as registrars, may sustain, by reason of their having in the ordinary course of their business, dealt in or acted upon any document because of the collusion, fraud or dishonesty of any employee of the insured.

We will indemnify architects and civil engineers for any sum or sums which they may become legally liable to pay, arising from any claim or claims made against them by reason of any error or omission occurring or committed in good faith, in connection with the business or practice on the part of the insured, or any partner, or any person employed by the policyholder.

Lawyers are covered for the breach of their professional duty by reason of any act, error or omission, whenever or wherever committed or alleged to have been committed, by the insured, the predecessors in business of the firm, or any person at any time employed by the insured or the predecessors, on behalf of the firm or such predecessors, of any business conducted in their professional capacity as lawyers.

We will cover medical practitioners for loss and claims expenses arising from libel and slander, in the course of rendering professional services, however we will only indemnify the insured for amounts which exceed the sum stated as the excess in the schedule, and then only up to a maximum amount equal to 25% of the limits of insurance set forth in the schedule. Such maximum amount is part of and not in addition to the limits of the policy.

This policy has certain requirements that shall be evaluated by the customer. It is very important to consider them in order to decide which insurance policy satisfies better the policyholder needs.

• You must take all reasonable steps to observe and comply with statutory or local authority laws obligations and requirements.
• You cannot settle any claim without the written consent of us.

The following restrictions apply to the policy:

• We will not cover accountants and auditors against any claim or loss arising from wrongful investment advice, concerning publicly quoted companies, unless such advice be given on the written recommendation of a member of a recognised stock exchange.
• We will not cover accountants and auditors against any claim or loss arising from loss, damage, distortion or erasure of computer systems records caused by climatic or atmospheric conditions, or extremes of temperature, unless such loss, damage, distortion or erasure would be recoverable under an ordinary Fire Policy.
• We will not cover architects and civil engineers against claims caused by bodily injury, disease, sickness or death of any person arising out of and in the course of his employment by the policyholder under a contract of service or apprenticeship.
• We will not cover lawyers in respect of any legal liability of whatsoever nature caused by, contributed to, or arising from the failure or inability of: any computer or auxiliary equipment; computer system software program or spreadsheet; data processing equipment media or auxiliary equipment; microchip integrated circuit or similar device; telecommunications equipment or systems or any other system for processing, storing, transmitting, retaining or returning data.
• In the event that the insured medical practitioner discovers that any document which is owned by the policyholder and is used in the rendering of professional services, or has been entrusted to the insured in the course of rendering professional services, has been destroyed or damaged, or lost or mislaid, and as result the insured becomes legally obligated to pay damages for loss to a third party, we will only indemnify the insured for damages and claims expenses which exceed the amount stated as the excess set forth in the schedule. We will only pay up to a maximum amount equal to 25% of the limits of insurance set forth in the schedule.
• We do not cover any loss caused by, resulting from, arising out of or related to Pandemic, Epidemic or Coronavirus Diseases.

We recommend to the policyholder, in order to receive benefits of all the guarantees of the policy, to consider some relevant aspects before and after contracting the policy:

• As soon as you become aware of an incident that may lead to a claim, and also upon the receipt by you of notice of any claim, you or your legal representatives must tell us immediately, and provide us at your own cost with all the information and help we need.
• The policyholder cannot admit liability or make or promise any payment in respect of any claim which may be the subject of indemnity, or incur any costs or expenses in connection without the written consent of us. We are entitled to take over and conduct in the name of the insured the investigation, defence or settlement of any claim for which purpose the insured shall give all such information and assistance required.
• If any claim under this policy is in any respect fraudulent, or if any fraudulent means or devices are used by you, or anyone acting on your behalf, to obtain any benefit under this policy, all benefits shall be forfeited.
• The indemnity provided by us shall apply only to judgements or orders that are delivered by or obtained from a court within the Maltese Islands.
• Accountants or auditors shall considerate that no indemnity will be provided to any person committing or condoning dishonest or fraudulent acts or omissions, and the sums payable under this policy shall only be for the balance of liability in excess of the amounts recoverable from the dishonest or fraudulent person or persons or their estates or legal representatives.
• Accountants or auditors shall considerate that where the assured’s breach of, or non-compliance with any condition of this policy has resulted in prejudice to the handling or settlement of any claim, the indemnity afforded by this policy in respect of such claim (including costs and expenses) will be reduced.
• In the event of any dispute or disagreement between the accountants or auditors insured and us, regarding the application of special conditions, such dispute or disagreement shall be referred for arbitration to the President of the Institute of Chartered Accountants, or his/her nominee, whose decision shall be final and binding upon both parties.
• Any claim for costs and expenses incurred by the insured lawyers in replacing or restoring documents must be supported by bills or accounts which must be subject to approval by a competent person to be nominated by us with the approval of the policyholder.