We often get asked, "What are the requirements for professional indemnity insurance (PII) in Ireland?" There is no set answer for this, as it varies widely depending on the profession and regulatory body overseeing the industry within which you operate. However, there are some general guidelines and considerations that one should keep in mind.

Certain professions, such as solicitors, accountants, architects, engineers, and healthcare professionals, may have regulatory bodies that mandate the requirement for PII. These bodies often set specific standards for the coverage limits, policy features, and insurers that are acceptable. Even if not mandated by a regulatory body, professional indemnity insurance might be considered a standard practice within certain industries or professions. In some cases, clients or contracts may require proof of PII coverage as a condition of doing business. This has become more common in Ireland with the large number of tech firms, and international businesses, based here, seeking professional guidance from Irish businesses. Different professions may also have unique risks that require specialised coverage. For example, architects might need coverage for design errors, while healthcare professionals may require coverage for malpractice claims. In some cases, a regulatory body or industry association may specify minimum coverage limits that professionals must carry. These limits are often based on factors such as the size of the firm, the nature of services provided, and the potential risks involved.

In some cases, professions may require PII policies to include retroactive coverage, which protects against claims arising from work performed before the policy inception date. On the flipside, professionals may need to maintain PII coverage continuously throughout their practice, or for a certain period after ceasing operations to cover claims that may arise at a later date.

It is crucial for professionals to understand their specific obligations regarding PII by consulting with their regulatory body, industry association, PII Insurance expert and / or legal advisor. Failure to comply with PII requirements could result in penalties, loss of licence, reputational damage or other legal consequences. 

At Dolmen, our PII team believe it is essential that one ask the following questions when taking out PII, to ensure they are getting the coverage and protection needed: 

1. What specific professional services does the policy cover?
2. What is the extent of coverage provided? Is it adequate for the risks associated with my profession?
3. What are the policy limits and deductibles?
4. Are there any exclusions or limitations that I should be aware of?
5. What is the claims process like? How responsive is the insurer when it comes to handling claims?
6. Does the policy offer retroactive coverage? If so, how far back does it go?
7. What is the insurer's financial strength rating? Is the company reputable and stable?
8. Are there any additional benefits or services included with the policy, such as legal assistance or risk management resources?
9. Can the policy be tailored to my specific needs, or is it a standard package?
10. What are the premium and payment options? Are there any discounts available for bundling policies or maintaining a claims-free record?
11. How long does the policy last? Is it renewable annually, or are there longer-term options available?
12. Are there any regulatory requirements or industry standards that the policy must meet?
13. What happens if I switch insurers in the future? Are there any penalties or considerations to be aware of?
14. Can the policy be canceled or amended, and if so, what are the procedures and potential consequences?

Asking these simple questions will help you make an informed decision when choosing a professional indemnity insurance policy. The compexity of PII requires a lifetime of skill and knowledge.  You or your company should consider seeking advice from a qualified insurance professional or legal advisor to ensure you fully understand the terms and implications of the coverage. Our PII team are amongst the most qualified, experienced and respected insurance experts in Ireland. Should you wish to discuss your PII options, or find out more about how we can help you, please reach out to us today. 

Ph: 01 9686201 or email: info@dolmen-insurance.ie