Anyone can make a mistake- but if your business is found liable for negligence, the costs can be financially devastating. Not only can it lead to an expensive lawsuit, but your business’hard-earned reputation may be damaged as a result.
That’s why professional indemnity insurance matters, for help protecting your assets and brand if your advice or insurance causes a client to take legal action against you.
Professional indemnity insurance is mandatory in some industries, such as medicine, accounting, law and financial advisers, with the requirements differing from state to state.
But even is cases where it’s not required by law, it’s recommended for anyone who is providing professional services or advice in exchange for a fee, like graphic designers, IT consultants and more. Regardless of your legal obligation, it’s often a customer requirement that you have this cover in place.
In 2014 alone, professional indemnity and public and product liability claims increased 27.7%
(Insurancenews.com.au ‘Claims up, premium down for PI and PL’, 2015)
$1,362 million of gross premium during the 2016 underwriting year
(APRA, National Claims Policy Database, 2017)
701,000 PI risks written is the 2016 underwriting year
(APRA, National Claims Policy Database,2017)
Civil liability to a third party arising out of the conduct of their professional business.
The cost of defending an inquiry by a regulatory body into the professional conduct of the insured
The costs involved in defending a claim triggered by the policy
Direct financial loss of the business caused by the dishonest or fraudulent conduct of an employee which is first discovered during the period of insurance
Additional costs and expenses incurred during a claim
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374 Lygon Street
Brunswick East, VIC 3057, Australia