What happens if you find yourself in this situation? We look at scenarios where you are accused of Professional Negligence. Below we will discuss the importance of Professional Indemnity Insurance along with some practical guidelines that you can follow once an incident arises which may give rise to a claim.
As a Travel Agent or Travel Wholesaler, you are a specialist in your field. As a consequence, the law requires that you exercise the required skill to an appropriate level expected from such Professionals. Your liability arises when there is a failure to provide this level of skill which could result in an award for damages being given to a third party who suffers the loss. Professional Indemnity Insurance will pay for the damages awarded against the Insured plus any costs or expenses incurred in defending the claim (subject always to the terms, conditions and exclusions contained in the actual policy).
One very important point to remember about your Professional Indemnity Policy is that it is on a “Claims Made” basis. This means that you must have a policy in place when a claim is made and not when the failure occurred. Sometimes there can be a large gap in time between when the actual or alleged failure occurred and when the claim is first brought against you.
Remember, should any circumstances arise which may result in a claim, you must immediately notify your insurance broker as any delay in notifying the insurer may result in your insurer refusing to accept your claim.
If you would like further information, please feel free to contact Rebecca Fleming, Account Manager of our Special Programs Division at Gow-Gates Insurance Brokers on (02) 8267 9919 or firstname.lastname@example.org to discuss your circumstances or to obtain a quotation.
General Advice Warning – the information in the above article is intended as a guide only and should not be relied upon without consulting your relevant insurance policy wording and conditions or conversely seeking professional advice from either your insurance broker or insurer regarding a claim or potential loss. Failure to adhere to this warning could result in a denial of a claim or potential loss or a reduction in settlement of a claim or potential loss.