Professional Indemnity - Managing Risk for Clients

Professional Indemnity insurance operates on what is known as a 'claims made' basis meaning that it is the policy in force at the time the claim is notified which will operate, irrespective of when the assignment was actually undertaken or when the alleged act of negligence took place. Claims can be made under a PI Policy for work done many years after services are complete (subject to the relevant limitation periods). As such TMG Corporate Services / The Mediator Group has held and continues to hold Professional Indemnity Insurance and Malpractice Insurance in all jurisdictions in which it operates.

TMG Corporate Services / The Mediator Group holds Professional Indemnity cover of €1,300,000 / £1,300,000 on any one claim.

Managing Client Risk

TMG Corporate Services / The Mediator Group manages the liability for clients by strictly adhering to self imposed professional standards and documented and actively managed operating procedures. We protect our clients, anticipating exposures and providing a high level of objective expertise to manage risk. A major cause of professional negligence claims is the failure of an adviser to think through, at the outset, how to deliver a service as a whole. TMG Corporate Services / The Mediator Group set expectations and terms of reference at the outset of each engagement.

Terms of Reference

In assessing each new assignment TMG Corporate Services / The Mediator Group applies the following criteria before agreeing to act on behalf of a client:

  • Is the assignment suitable in terms of scope, certainty of outcome and flexibility of operations?
  • Does the assignment compliment the competencies of TMG Corporate Services / The Mediator Group?
  • Is there an inherent risk to TMG Corporate Services / The Mediator Group in the assignment and if so is is priced into the contract?
  • Are the client's objectives and motives reasonable?
  • Can the assignment be delivered effectively in that context?
  • Is the requested timeframe reasonable given the current workloads within the firm?
  • Is the client committed to the task and to mutually-acceptable terms of engagement in particular budget and payment of fees?

In evaluating the responses to these questions and taking the appropriate actions derived from these responses TMG Corporate Services / The Mediator Group actively manages its own and its clients risk. For more information please email This e-mail address is being protected from spambots. You need JavaScript enabled to view it

Graham Penrose, Penrose (Graham), PCASP, AES-512 (GRP: CLOSED: profile green-mobile), [Algiers, Algeria]