Our Professional indemnity insurance Malaysia provides professionals with peace of mind.
If your client or a third party makes a claim against you as a result of the legal services you provided, your Professional Indemnity Insurance (PII) will cover you. Negligence, breach of trust, and defamation are some of the claims that could be made.
PI claims are usually the result of an alleged failure to exercise your duty of care to a reasonable standard. If the Claimant suffers a loss as a result of this, the Claimant may seek compensation from you. A missed deadline, wrong counsel, or failure to follow directions could constitute the accused shortcoming. Any compensation you pay to the Claimant, as well as any legal costs spent in defending the claim, will be covered by PI.
How Does PI Work?
PI insurance are underwritten on the basis of “claims made.” In other words, the PI policy that applies is the one that was in effect on the day the claim was filed, not the one that was in effect at the time the claim was filed.
You should contact your insurer as soon as you become aware of a claim against you or circumstances that may lead to one.
Please contact us, even if you believe:
- It’s possible that the claim will be denied.
- It is worthless.
- Any agreed-upon excess would apply to the amount claimed.
PII is required in certain areas of legal activity.
- If you work as a private practice lawyer, you must have PII.
- If your work requires you to work in-house for clients other than your employer, you’ll need PII.
- giving legal counsel to businesses
- working in foreign law companies working in law centers, charities, and other non-commercial advisory services
- If you’re working in-house, you don’t require PII because:
- You’re only working for your boss.
Despite the fact that your organization operates entirely outside of the Malaysia, you must have the indemnity insurance required by the jurisdiction in which it operates.
Coverage Amount and Scope
For lawyers who practise in sole proprietorships and partnerships, the Scheme currently provides S$1 million in coverage (inclusive of costs and expenses) for each claim, and S$2 million in coverage (inclusive of costs and expenses) for lawyers who practise in limited liability law corporations (LLCs) and limited liability law partnerships (LLPs).
The Scheme protects all practicing lawyers, retired practitioners, practise trainees, articled clerks, and all other law firm workers from civil responsibility arising from any act or omission while delivering legal services or performing incidental duties.
Features of PII
Legal Requirement – Regulation
Accountants, doctors, engineers, financial advisers, lawyers, and insurance brokers, for example, are legally required to carry Professional Indemnity insurance.
Protecting Your Reputation
If you’re a professional, your reputation is vital, and it’s critical that you keep it. In the event of a claim, our claims staff will handle it quickly and discreetly in order to protect your outstanding reputation.
Obligations Under Contract
As a result of globalization, proficient specialists in Southeast Asia and China are increasingly required to have professional risk protection as one of the essential requirements to be insured, in addition to offering to business organizations abroad (particularly those in the United States, Europe, the United Kingdom, and Australasia).
Customer Security
Professional liability insurance is designed to mitigate the financial risks that expert specialist organizations face. This reduces the amount of compensation paid out in the event of a disaster and gives the expert peace of mind, allowing them to focus on what matters most – meeting the needs of their consumers.
Financial Security
A single legal claim can progressively ruin a business, as prosecution can be costly, time-consuming, and asset-draining. When faced with such issues, Capstone’s professional liability protection will provide you with the peace of mind you need.
Environment of Litigation
The growing monetary interdependence and cultural blending between the East and the West is raising the level of awareness among professionals in a variety of fields. Expert risk claims are rapidly increasing in number and amount, indicating the precarious situation in Southeast Asia and China.
You Are Ineligible to Use Standard Lawyer’s PI For:
- Associated with professional disciplinary hearings are defense costs. It used to be permissible under the old SIF arrangements, but that changed in 2010 after the Legal Services Board proposed changes. Insurers, on the other hand, can help with the defense of disciplinary proceedings that may have a direct impact on a claim covered by the policy – normally at the insurer’s discretion.
- Complaints to the Legal Ombudsman about service’ rather than ‘legal responsibility’ issues. Any awards made against you for inadequate service (together with the fees of the Legal Ombudsman) are normally not compensated.
Other topics that aren’t covered include:
- The Insured practise commissions or condones dishonest or fraudulent behavior.
- Penalties or fines.
- Liability for bodily harm or damage to property.
- Partner, shareholder, or employee disagreements inside the company.
- Personal debts or trading obligations of the Practice, such as simple fee disputes or trading guarantees or warranties.
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