Insurer roots for professional liability cover

By Vision reporter

With every enterprise being susceptible to risks caused by faults within professional operations, it would be important to embrace professional liability insurance cover to guard against such shortcomings, a senior insurer has advised.

Alex Wanjohi, the managing director for Chartis/AIG Uganda observed that professionals like accountants are more vulnerable to risks; it is possible that their works could plunge organisations into huge losses that can only be offset by the insurance cover in question.

“As accountants, overseeing the flow of enterprises’ financial resources is one of your major duties; it is one of the most critical areas of professional undertakings likely to expose you to errors, this is why organisations must take up professional liability cover to remain afloat even in the face of such shortcomings,” he said.

Wanjohi was recently addressing members of the Institute of Certified Public Accountants of Uganda during their annual seminar held at Imperial Resort Hotel, Entebbe, AIG was the event’s gold sponsor.

Professional liability insurance covers professionals for claims made against them for economic losses emanating from the advices and services that they provide to their clients. It provides financial protection to meet the costs of defending legal actions and any damages that may become payable.

The insurer pointed out that a single claim can freeze a business because it may come with huge legal costs and other losses that can even eat into more company resources.

The cover is meant for professionals like; accountants, architects, engineers lawyers and insurance brokers, doctors, journalists among others.


Wanjohi revealed that Chartis/AIG introduced the professional liability insurance onto the local market barely two years ago, but the cover is gaining a firm ground with impressive levels of appreciation.

Professional liability cover is considered as a pre-requisite by developed economies   like Southeast Asia and China when tendering for business with overseas companies, especially where contracts are awarded by clients based in the US, Europe, UK and Australasia.