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PROFESSIONAL INDEMNITY INSURANCE
Industries A - E
Examples of actual claims made and settled by Insurers.
Miscellaneous – A
Actuaries
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The Insured used incorrect tables for an annuity scheme which led to overpayment to the annuitants. |
£1,300,000 |
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It is alleged that the Insured carried out a negligent valuation of a company’s pension fund prior to the sale of the company.The purchaser claims a shortfall on the valuation. |
£908,000 |
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The Insured over-valued part of a pension fund resulting in an overpayment.Any chance of recovery would be time-barred. |
£500,000 |
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It is alleged that due to an error in the costings of a pension, an employee is receiving a higher pension than intended.A claim has been made against the actuaries for the additional cost to the employers. |
£250,000 |
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Money was transferred from one fund to another but a miscalculation resulted in an overpayment to the policyholders. |
£120,000 |
Agricultural Consultants
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The client alleged negligence in work done for a co-operative. |
£100,000 |
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The Insured gave advice concerning the application of chemicals to a field of winter wheat.It was alleged to have resulted in the crop being severely scorched and the yield reduced. |
£70,000 |
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It was alleged that the Insured gave negligent advice regarding spraying for potato blight. |
£15,000 |
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The client alleged that as a result of advice given by the Insured, his crop suffered wire-worm infestation. |
£14,000 |
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The client’s crop suffered from a fungal disease as a result of the alleged failure of the Insured to provide correct advice in the treatment of the crop. |
£10,000 |
Auctioneers
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The Insured sold property at auction over a number of years.It is alleged that the property was stolen and a claim has been brought for conversion. |
£260,000 |
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The Insured was instructed to sell antique ornaments by someone purporting to act for the owners.A claim has been brought for conversion as a result of the owners of the property alleging that they had not consented to the sale. |
£120,000 |
Audio and Video Facilities
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A TV commercial was produced but when it was transmitted it was discovered that there was no sound because the spools were incompatible. |
£25,000 |
Miscellaneous – B
Biotechnical Consultants
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It is alleged that a waste treatment plant designed by the Insured failed to operate adequately resulting in higher than permitted discharge levels into the adjacent river.A claim has been brought for costs of rectification.
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£30,000 |
Building Society
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The Insured advanced money to a company in respect of a property purchase.Arrears mounted and the borrower went into liquidation.The Insurer’s solicitors (in house) had not registered the charge.
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£80,000 |
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A local branch manager was involved in a fraud by processing inflated mortgages through bogus valuations.
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£65,000 |
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A valuation report omitted any reference to subsidence.
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£55,000 |
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An account was wrongly credited with a substantial amount of money.Almost all of it had been withdrawn when the error was noted.
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£40,000 |
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The Insured permitted accounts to be set up for a society where only one signature was necessary to make withdrawals.A number of such accounts were subject to fraud.
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£35,000 |
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A valuation failed to point out serious defects in a property which was worth only site value.
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£14,000 |
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It was alleged that the Society gave inaccurate investment advice.A claim was brought for loss of interest.
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£13,000 |
Miscellaneous – C
Cargo Surveyors
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Cargo which was inspected by the Insured was later found not to conform to specification. |
£150,000 |
Company Registrars
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Registration work was carried out in connection with the launch of a unit trust fund.Units were sold back to the fund but the Insured failed to comply with the two month deadline to reclaim stamp duty. |
£81,000 |
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During the takeover of one company by another the Insured under-recorded the number of acceptances on a computer, thereby involving their client in a substantial loss. |
£40,000 |
Company Search Agents
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The Insured were negligent in carrying out a company search causing their client additional expense. |
£30,000 |
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The Insured advised their client that there would be no objection to their proposed name after carrying out a search.A company with a similar name issued an injunction. |
£10,000 |
Company Secretaries
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It is claimed that the Insured failed to file annual returns on behalf of a new company with Companies House.The client was struck off the Register resulting in bank accounts being frozen.The client also alleges loss of business. |
£20,000 |
Computer Bureau
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It is claimed that a mistake in a computer program caused clients’ mailshots to be sent to incorrect addresses. |
£250,000 |
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Due to errors in a national consumer database, mailshots were sent out to the wrong addresses. |
£100,000 |
Conference Organisers
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The insured was negligent in the organisation of a conference which proved to be a total failure as a result. |
£290,000 |
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Documents and transparencies produced for a conference were damaged. |
£21,000 |
Consulting Chemists
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The Insured incorrectly diagnosed a harmful chemical as being present in a food sample.The client is claiming for all costs incurred in recalling the food from retail outlets. |
£100,000 |
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Metal bars did not actually contain the certified metal contents. |
£80,000 |
Contract Research Consultants
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The client alleged negligence in surveying for the presence of blue asbestos. |
£50,000 |
Cost Consultants
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It is alleged that in costing for a heating system for a block of flats the Insured omitted certain items and under-priced others. |
£60,000 |
Miscellaneous – D
Direct Mail Specialists
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Notices advising customers of a financial institution, concerning an interest rate change were despatched incomplete.Re-mailing was required.
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£27,000 |
Draughtsmen
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The Insured produced drawings for structural steelwork which contained several errors, resulting in delays and extra costs.
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£30,000 |
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A client alleged that the Insured failed to carry out his instructions, resulting in a duplication of work by builders.
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£25,000 |
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Drawings for extensive steelwork were delayed, which resulted in penalties and losses being sustained by the contractor.
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£15,000 |
Miscellaneous – E
Educational Establishment
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The establishment was commissioned to provide a computer system in connection with a television broadcast.The system broke down and a claim was made for the costs of making alternative arrangements.
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£25,000 |
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It was alleged that research by the Insured in regard to potential foreign students was badly planned and produced no benefit to the client.
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£15,000 |
Estate Managers
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The Insured negligently supervised tree planting on part of an estate.The area is now significantly understocked.
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£50,000 |
Ensure that these claims don't happen to you and your company, please contact us now and we will be happy to advise you on a professional indemnity policy that is tailored specifically for your needs.
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