nemsupport@nem-insurance.com
It became a Nigerian branch of NEM General Insurance Association Limited of London in 1965 and incorporated in 1970 as a Nigerian company in compliance with the Companies Decree of 1968..
The purpose of NEM’s Professional Indemnity Insurance policy is to protect the professional person against legal liability by paying damages to persons who have sustained financial loss arising from the professional’s negligence or that of their employee in the conduct of business.
Professional Indemnity Insurance provides financial protection where a client suffers loss due to an error, omission, or breach of professional duty. This policy is essential for professionals who provide advice, consultancy, or specialized services and may be exposed to claims for negligence.
In today’s business environment, professionals face increasing legal and regulatory scrutiny. A single claim can result in significant financial loss, reputational damage, and disruption to business operations. Professional Indemnity Insurance in Nigeria helps safeguard professionals against these risks by covering compensation claims and associated legal costs.
Professional Indemnity Insurance is a form of liability insurance designed to protect professionals against claims made by clients for financial loss resulting from professional negligence, errors, or omissions. It covers the insured’s legal liability arising from their professional services.
This policy applies where:
A client alleges negligence in the performance of professional duties
There is a breach of professional responsibility
Incorrect advice or faulty service leads to financial loss
An employee’s professional error causes loss to a third party
Unlike general liability insurance, Professional Indemnity Insurance specifically addresses risks linked to professional judgment and expertise.
This policy is suitable for professionals whose services involve advice, design, or technical expertise. These include:
Consultants
Architects and engineers
Accountants and auditors
Lawyers and legal practitioners
Insurance brokers and financial advisers
IT professionals and software developers
Medical practitioners and healthcare consultants
Management and business advisers
Any organization that provides professional services for a fee may be held legally responsible for losses suffered by clients due to negligence or mistakes. This makes Professional Indemnity Insurance an essential risk management tool.
Professional Indemnity Insurance provides cover for:
Legal liability arising from professional negligence
Errors or omissions in professional services
Financial loss suffered by third parties due to professional advice
Negligence committed by employees in the course of business
Cost of damages awarded to affected clients
Legal defense costs incurred in handling claims
The policy responds when a claim is made alleging that a professional duty was not properly discharged and that such failure resulted in financial loss.
Professional services rely heavily on expertise and judgment. Even highly skilled professionals can make mistakes that lead to client losses. Without insurance, the professional would be personally responsible for compensation and legal fees.
Professional Indemnity Insurance provides:
Financial protection against large compensation claims
Support for legal defense expenses
Business continuity in the event of litigation
Increased client confidence and credibility
Compliance with contractual or regulatory requirements
Many corporate clients and regulatory bodies require professionals to maintain Professional Indemnity cover before awarding contracts or licenses.
Professional Indemnity Insurance in Nigeria has become increasingly important due to:
Growth in professional service industries
Rising awareness of consumer rights
Increased litigation and dispute resolution
Regulatory requirements in certain sectors
As Nigerian businesses become more formalized and contract-driven, the likelihood of disputes over professional services continues to rise. This policy ensures professionals are financially protected against claims arising from such disputes.
This cover can also complement Engineering Insurance for professionals involved in construction and technical projects, and Motor Insurance where professional services involve vehicle-related operations.
The sum insured under a Professional Indemnity Policy represents the maximum amount payable by the insurer for any one claim or series of claims within the policy period. The scope of cover depends on:
The nature of the professional service
The level of risk involved
The professional’s past claims history
The chosen policy limit
The policy is usually issued on a claims-made basis, meaning it responds to claims first made during the policy period, regardless of when the professional service was rendered, subject to policy terms.
NEM Insurance provides Professional Indemnity Insurance tailored to meet the needs of various professional groups. The policy is structured to:
Provide protection against financial loss arising from negligence
Cover liability resulting from employees’ professional errors
Offer dependable claims handling support
Align with Nigerian insurance regulations and professional standards
This policy may be combined with Fire and Special Perils Insurance and Burglary Insurance to create a broader business protection package.
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