“Civil Liability” vs “Negligence, Error or Omission” wordings in Professional Indemnity Policy

Civil Liability wording covers “civil liability” incurred by the Insured in the conduct of the Insured’s business

Simply speaking, civil liability is a civil law requirement to compensate another because of an unlawful injury to his/her person or property

In civil law, a party (e.g. a corporation or an individual person) files the lawsuit and becomes the plaintiff, the losing defendant in civil litigation reimburses the plaintiff for losses caused by the defendant’s behavior.

In criminal law, the litigation is always filed by the government “the prosecution”. A guilty defendant is punished by either (1) imprisonment, and/or (2) fine paid to the government

Negligence wording covers legal liability for compensation for breach of professional duty in the conduct of the Insured’s business by reason of negligent act, error or omission committed or alleged to have been committed on the part of the Insured

That means we will only cover the claim when there is a breach of professional duty by reason of negligent act, error or omission of the Insured

“Civil Liability” wording is considered to be broader in view that it covers any civil liability incurred in the conduct of the Insured’s business without specifying there must be negligent act, error or omission

copied by Imam MUSJAB

Tel: +628128079130 email: imusjab@qbe.co.id

source: “Professional Lines Workshop” material; QBE Asia; by Charles Lui