Professional Indemnity Insurance In Malaysia

Who need this insurance ?

Professionals such as Solicitors, Architects, Accountants, Engineers, Surveyors, Brokers and the like.

Scope of Cover

The policy protects the professional (the insured) against any claim for damages which may be made against him for breach of professional duty, by reasons of any negligent act, error or omission in his professional capacity.

What the policy does not cover:-

  1. Libel and Slander.
  2. Dishonesty, fraudulent, criminal or deliberate act of the Insured.
  3. Libility in respect of any claims if Insured is entitled to any indemnity under any other policy.

Extensions Available

  1. Libel and Slander.
  2. Partner’s Previous Business.
  3. Loss of Documents.
  4. Dishonesty of Employees.


The policy is subject to a minimum amount of deductible. However the Proposer may opt to carry a higher amount of deductible in exchange for a lower premium.

Retroactive Cover

Retroactive cover can be provided i.e. cover for negligence occurring prior to the inception date of the policy. This cover is usually restricted to between 3 – 5 years.

Limit of Indemnity

The proposer selects his own limit of indemnity which he considers adequate to meet any potential claim

Definition of ‘Insured’ under Professional Indemnity Policy

The Insured is defined as the firm, practice or company made up of its partners, its qualified professional staff including its clerical or secretarial staff.

Basis of Rating

1. Annual fees of firm for:-

  • Preceding year
  • Current year
  • Projected for following year

2. Duly completed proposal form

3. Previous insurance and claims history

4. Indemnity limit required

5. Background of firm

6. Extension required

Minimum Premium – RM250.00