Professional indemnity insurance covers defense costs, the process of lawyer appointment, and associated costs i.e. charge of legal defense once a lawsuit has been filed against the insured.
Listed below is the manner that would manage the claim, once triggered:
- Insured receives a legal notice or a complaint threatening legal action
- It is the insured’s duty to inform the insurer/broker of the incident immediately
- Depending on whether the professional indemnity policy form is a duty to defend or a right to defend, the insurer will carry out the process of lawyer appointment from its legal panel or seek recommendations from the insured on his choice of the legal representative
- The insurer’s legal panel constitutes legal counsel of multiple specializations. In case the insurer deems it needful it may appoint a specialized legal counsel from outside.
- Based on the intensity of the claim, the insurer may approve the insured’s choice of legal counsel. And recommend loss prevention measures
Insurer’s claim team and insured conduct a joint meeting with the appointed legal counsel. And provided all relevant case facts for representation.