There’s no doubt you have the confidence and expertise required to work in your professional field, however if you give advice or provide a service it’s important to protect your business against claims of malpractice or professional misconduct. After all, you’re only human and making mistakes is part of life. It only takes one allegation that you’ve made a mistake, overlooked a critical piece of information, misstated a fact, or failed to provide a promised service resulting in financial loss or injury to your client to turn your business upside down. But while you can’t control an unhappy client you can have some control over how a claim made against you is managed.
Professional Indemnity insurance is designed to protect businesses and individuals against the financial consequences of any errors you or your staff might make. It covers compensation costs to your client/complainant, as well as legal and defence costs. Even if you haven’t done anything wrong an unsubstantiated allegation could still cost thousands of dollars to defend, so unless you’ve got a law degree up your sleeve you’re going to need some expert help. Having a Professional Indemnity policy will not only give you access to the funds you need to defend yourself; it will help protect your reputation too.
Professional Indemnity Insurance covers you for the legal costs and claims for damages that may arise from an act, omission or breach of duty in the course of your business, as well as investigation costs from professional bodies.
A Professional Indemnity claim could result from:
Some examples where Professional Indemnity Insurance could apply are:
When considering Professional Indemnity Insurance it’s important to consider the risks your business is exposed to as each industry is unique. That’s why most Professional Indemnity policies are often tailored to meet the industry-specific needs of key professionals and consultants.
We offer policies from some of Australia’s leading insurers with cover limits from $500K to $20M.
Consider the following when choosing the right policy:
It’s important to understand the difference between Professional Indemnity and Public Liability insurance as the two types of cover can often cause confusion. Whilst both covers protect your business against legal action they both offer different forms of protection.
Professional Indemnity insurance covers you for claims that arise from an act, omission or breach of duty as a result of the professional advice, design or service that you offer. Professionals that work in health, fitness or beauty; real estate; IT; financial or legal services; and design or consultancy services always require Professional Indemnity insurance.
Public Liability insurance covers against claims made against you should a customer, supplier, or member of the public suffer bodily injury or property damage as a result of your business activities and which do not involve a breach of professional duty,. For example, if someone trips over a box that you’ve left in a walkway, or you damage your client’s laptop by spilling coffee over it. Whether you work in a professional field or not, all businesses have a ‘general’ duty of care and therefore need Public Liability cover.