Bolam test
The Bolam test, from Bolam v Friern Hospital Management Committee [1957] 1 WLR 582, is the UK standard for determining breach of duty in professional negligence cases: a professional is not negligent…
Bolitho test
The Bolitho test, from Bolitho v City and Hackney Health Authority [1998] AC 232, is the qualification of the Bolam standard under which a court may reject a body of professional opinion relied upon b…
Breach of confidentiality
Breach of confidentiality cover is a professional indemnity extension that indemnifies the insured against legal liability and defence costs arising from the unauthorised disclosure, use or misuse of…
Breach of duty of care
Breach of duty of care is the second element of the tort of negligence in English law, occurring where the defendant fails to act with the standard of care that a reasonable person — or in professiona…
Caparo v Dickman
Caparo Industries plc v Dickman [1990] 2 AC 605 is the House of Lords decision that established the tripartite test for the existence of a duty of care in negligence — foreseeability of damage, suffic…
Civil liability
A civil liability wording is a professional indemnity insuring clause that responds to any legal obligation to pay damages owed by the insured to a third party arising from the conduct of the professi…
Continuous coverage clause
A continuous coverage clause is a provision in a claims-made professional indemnity policy that preserves indemnity for a circumstance which the insured ought to have notified in an earlier policy yea…
Defamation cover
Defamation cover is a professional indemnity extension that indemnifies the insured against legal liability and defence costs arising from the unintentional publication of defamatory matter in the cou…
Dishonesty exclusion
The dishonesty exclusion is a standard professional indemnity policy term that excludes cover for liability arising from the dishonest, fraudulent, criminal or malicious acts of the insured, usually s…
Hedley Byrne v Heller
Hedley Byrne & Co Ltd v Heller & Partners Ltd [1964] AC 465 is the House of Lords decision that established a duty of care in tort for negligent misstatements causing pure economic loss, founded on a…
Insolvency exclusion (PI)
An insolvency exclusion is a clause within a professional indemnity policy that removes or restricts cover for civil liability arising directly or indirectly from the insolvency, bankruptcy, administr…
IP infringement cover
IP infringement cover is a professional indemnity extension that indemnifies the insured against legal liability and defence costs arising from the unintentional infringement of a third party's intell…
Known circumstances exclusion
A known circumstances exclusion removes cover under a professional indemnity policy for any claim arising out of a fact or matter that the insured knew, or ought reasonably to have known, was likely t…
Limited liability partnership PI
Limited liability partnership (LLP) PI is professional indemnity insurance written for an LLP — a body corporate registered under the Limited Liability Partnerships Act 2000 — covering civil liability…
Loss of documents (PI cover)
Loss of documents cover is a professional indemnity extension that indemnifies the insured for the reasonable costs incurred in replacing, restoring or reconstituting documents in the insured's custod…
Negligent act, error or omission
'Negligent act, error or omission' is the historic professional indemnity insuring trigger that responds to liability arising out of an alleged breach of professional duty in the tort of negligence, n…
Partnership cover (PI)
Partnership cover is professional indemnity (PI) insurance arranged for a traditional unincorporated partnership of regulated professionals, indemnifying the firm and its partners against civil liabil…
Practising certificate insurance
Practising certificate insurance is the professional indemnity (PI) cover that a regulated professional must hold as a condition of obtaining or renewing the practising certificate, licence, or regist…
Prior acts coverage
Prior acts coverage is the element of a claims-made professional indemnity policy that extends indemnity to civil liability arising from acts, errors, or omissions committed before the start of the cu…
Professional indemnity insurance
Professional indemnity insurance is a contract of insurance that indemnifies a professional firm or individual against legal liability to third parties arising from negligent acts, errors or omissions…
Retroactive date
The retroactive date in a claims-made professional indemnity policy is the earliest date for an act, error, or omission of the insured that the policy will cover; any conduct before that date falls ou…
Run-off coverage
Run-off coverage is the continuation of a claims-made professional indemnity policy after the insured firm has ceased trading, designed to indemnify civil liability claims made against the firm for wo…
Sole practitioner cover
Sole practitioner cover is professional indemnity (PI) insurance arranged for a regulated professional who carries on business as an individual without a separate corporate or partnership vehicle, ind…
Solicitors Compensation Fund
The Solicitors Compensation Fund is the statutory client protection scheme established under section 36 of the Solicitors Act 1974 and administered by the Solicitors Regulation Authority, providing di…
Solicitors Indemnity Fund
The Solicitors Indemnity Fund (SIF) is the historic mutual professional indemnity scheme for solicitors in England and Wales, established by the Law Society in 1987 and now operating in long-tail run-…