How does Professional Indemnity Insurance work?
Professional Indemnity Insurance in action
After a series of repeated indiscretions, and having received several warnings, a student was expelled from school. Subsequently, the parents of the student issued Supreme Court proceedings against the school alleging a breach of professional duty towards their child, as well as breach of contract with the parents.
A claim was lodged under the school's Professional Indemnity Insurance policy and a settlement was negotiated for the amount of $50,000 plus defence costs of $35,000. These costs were all covered by CCI.