Professional Indemnity Insurance for Engineers, Technologists, and Architects
This information document only specifies the main aspects of the insurance, such as what is included and what is not. It is not an exhaustive list or a personal overview of the insurance that customers choose. The information document has no legal significance and is intended solely to inform customers about the main aspects of the insurance. The insurance summary and detailed information on the applicable contract terms are available on the insurance policy, which can be accessed on Vörður’s My Pages. The terms and conditions of the insurance contain comprehensive information about the insurance coverage and are a part of the agreement between the parties together with the insurance certificate.
What kind of insurance is Professional Indemnity Insurance for Engineers, Technologists, and Architects?
Professional indemnity insurance is intended to compensate for general financial damage that the insured may cause to their customers in the course of their work. Engineers, technologists, and Architects may purchase professional indemnity insurance for their work, but if the work involves the design of main or detailed drawings, it is mandatory under the law to purchase and maintain such insurance.
What Is Covered?
Liability for damages imposed on the insured due to damage to property or structures that their design or work relates to, and that can be traced to their mistakes.
What Is Not Covered?
Losses resulting from the insured assuming liability or giving promises that go beyond their general liability within their professional field.
Losses suffered by parties directly or indirectly connected to the insured, such as through ownership or management relationships.
Losses due to bodily injury, defamation, violation of tax laws, general criminal laws, or specific criminal provisions, fines, or other penal sanctions.
Losses arising from work outside the insured’s professional scope, even if related to activities listed in the insurance certificate, such as contracting, property management, fishing operations, manufacturing, repairs, or equipment sales.
Losses arising from claims based on incorrect information about construction costs or project timelines.
Losses incurred from work needed to determine the cause of an incident, including recalculation, redesign, or revision of specifications or plans to mitigate damages.
Claims arising from the insured providing financing, financial advice, or insurance services.
Damage to property that the insured holds on loan, for rent, storage, sale, transport, or other custody purposes.
Damage related to motor vehicles, aircraft, ships, boats, or other modes of transport.
Losses covered under general liability insurance for business operations.
Losses arising from infringement of trademarks or intellectual property rights.
Losses due to fire, nuclear incidents, or radioactive substances.
Losses caused by pollution of soil, air, or water.
Are there any restrictions or precautionary rules?
The insured is required to comply with Vörður's precautionary rules.
Where is the insurance valid?
The insurance covers only damage that occurs in Iceland as a result of the insured’s work in Iceland.
What are the insured's obligations?
Provide all necessary information, whether at renewal, when making changes to the insurance, or when submitting a claim.
The insured is obligated to attempt to prevent or minimize loss.
The insured must notify the company immediately of any loss. The same applies if the insured becomes aware of or suspects that a claim for damages may be made against them that is likely to be covered by the insurance.
The insured must, free of charge, assist the company in preventing losses and investigating their causes, including preparing expert opinions, cost estimates, plans, and related materials.
The insured may not acknowledge liability or enter into any settlement agreements without the consent of the company.
When and how is the insurance paid for?
The insurance premium must be paid on the due date. Upon renewal, the annual premium is adjusted in accordance with changes in the index from the base index of the agreement. Vörður sends payment claims monthly to online banking services, or annually if the policyholder prefers to pay the premium in a single installment. It is possible to change the payment method via Vörður's online service, “My Pages.” There, policyholders can also choose to pay premiums using a credit card.
When does insurance coverage begin and how does it end?
Insurance contracts are generally valid for 12 months from the date of acceptance of the offer and issuance of the insurance, and premiums are based on the annual premium. If the insurance is not terminated within that period, it is automatically extended.
How is the insurance terminated?
The insurance can be terminated at any time during the insurance period.