Professional indemnity, public liability and goods in transit insurance in Kenya

What each policy covers

The wording comes from insurers' own pages. Africa Merchant Assurance (Amaco) says its professional indemnity policy indemnifies the insured "against his legal liability for loss from any claim made against him arising out of an error omission or negligence on his part or on the part of his employees in the conduct of his profession", committed while the policy is in force. Its public liability page says the policy covers legal liability to third parties only, "not moral liability", and also protects against vicarious liability for the acts of employees or contractors. Its goods in transit policy covers "loss or damage to goods while being transported from one place to another subject to the jurisdiction clause", in the insured's own vehicles or vehicles it hires.

Madison General Insurance describes PI as covering the legal costs of defending a negligence claim (lawyers, court fees, settlement) and the client's financial loss if the claim succeeds, and names consultants, legal professionals, accountants, architects, engineers and medical practitioners among those who need it.

Who must hold professional indemnity cover in Kenya

Two obligations are written in the law we could check on 31 October 2026:

• Advocates. Every advocate practising on their own account must buy professional indemnity cover of not less than KES 1 million; partners buy it in common, with the same minimum. It compensates clients for loss from any civil liability or breach of trust by the advocate or their employees, and no practising certificate is issued until it is in place (Advocates (Professional Indemnity) Regulations, regs 2–4).
• Insurance brokers. An application for registration as a broker must come with a professional indemnity policy in the prescribed form and amount, and the Commissioner registers a broker only if that policy is satisfactory (Insurance Act ss.151(1)(a) and 153(1)(e)). The same rules apply to medical insurance providers (s.150A).

For other professions, check your own regulator's current rules before you rely on a contract or a tender clause: we list only the obligations we could read in the primary text.

Goods in transit and marine cargo

Goods in transit insurance covers goods moved by road inside the area its jurisdiction clause names. Goods shipped into or out of Kenya are insured under a marine cargo policy (class 06 in IRA's list).

Under section 20(1) of the Insurance Act, no insurer, broker, agent or other person may place any Kenyan business, other than reinsurance, with an insurer not registered in Kenya without the Commissioner's prior written approval — so a Kenyan business insures its cargo with a Kenyan-licensed insurer.

When goods are lost or damaged, report quickly. Amaco's claims page, for example, asks for a goods in transit loss to be reported within 48 hours and not later than 7 days, with the claim form, a police abstract, the consignment note and the policy schedule. Once all documents are in, an insurer must settle within 90 days (Insurance Act s.203).

How to buy one

In IRA's notice of 30 March 2026 (full list), 32 of the 35 general insurers are authorised for class 05 (liability) and for class 06 (marine); the three that are not are licensed for medical business only. The alphabetical list is on licensed insurance companies in Kenya.

1. Write down what you need covered: your profession or activity, your yearly turnover or fees, the limit a client, contract or regulator asks for, and the goods and routes for transit cover.
2. Ask two or three licensed insurers or a licensed broker for a written quote; brokers and agents are checked on IRA's registry (see IRA Kenya).
3. Compare the limit of indemnity, the excess, the exclusions and, for PI, whether claims are covered when made during the policy period.
4. Pay the insurer or the broker's client account, never a personal number, and keep the policy schedule.

Sources

1. Advocates (Professional Indemnity) Regulations, Legal Notice 82 of 2004 (revised 31 December 2022), regulations 2–4 — Kenya Law (Web Archive copy of 9 March 2026)
2. Insurance Act, Cap. 487 (Rev. 2022) — s.3 (establishment of IRA), s.3A (objects and functions), s.3E (Commissioner of Insurance), s.19 (only registered persons), s.20 (placing risks with unregistered insurers), s.67C (statutory management, moratorium), s.151 and s.153 (brokers' professional indemnity), s.179 (Policyholders Compensation Fund), s.184 (annual notice of registered persons) — Nairobi International Financial Centre Authority copy
3. IRA Kenya — Licensed Entities 2026, notice under section 184 of the Insurance Act dated 30 March 2026, with the key to classes of business (01–14 general, 31–37 long-term) (Web Archive copy of 15 May 2026)
4. Africa Merchant Assurance (Amaco) — Professional Indemnity product page (insurer's own page, seen 31 October 2026)
5. Africa Merchant Assurance (Amaco) — Public Liability product page (insurer's own page, seen 31 October 2026)
6. Africa Merchant Assurance (Amaco) — Goods In Transit product page (insurer's own page, seen 31 October 2026)
7. Africa Merchant Assurance (Amaco) — Claims: claim procedures for motor, goods in transit, WIBA, group personal accident and windscreen (insurer's own page, seen 31 October 2026)
8. Madison General Insurance Kenya — Understanding business insurance: what is professional indemnity insurance? (insurer's own page, updated 4 June 2026, seen 31 October 2026)