Types of liability - Contract

If you have a contractual relationship with your client, this type of professional indemnity insurance could be essential cover for you. The most relevant implied term in general commercial contracts is that the professional has a duty to act ‘with reasonable care and skill’. If your client can prove that you have failed to act in this way, and that they have suffered a loss as a result, they may sue you in order to recover damages.

Defences of such claims will often be based on the professional demonstrating that they did act with ‘reasonable care and skill’.

          Part 3: Liability types: Tort> 

Covered in this guide

Part 1: Introduction

Part 2: Liability types: Contract

Part 3: Liability types: Tort

Part 4: Breach of statutory duty

Part 5: Specified/unspecified basis

Part 6: Breach of intellectual property & fiduciary duty

Part 7: Professional indemnity extras

Download a printable professional indemnity PDF guide