Professional Indemnity

Insurance

What is professional indemnity insurance?

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.

 

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Who should consider it?

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.

Did you know?

27.7%

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

$1,362 million of gross premium during the 2016 underwriting year

(APRA, National Claims Policy Database, 2017)

701,000

701,000 PI risks written is the 2016 underwriting year

(APRA, National Claims Policy Database,2017)

What can it cover?

Civil liability

Civil liability to a third party arising out of the conduct of their professional business.

Inquiry costs

The cost of defending an inquiry by a regulatory body into the professional conduct of the insured

Defence costs

The costs involved in defending a claim triggered by the policy

Fidelity cover

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

Advancement of costs and expenses

Additional costs and expenses incurred during a claim

Get in touch

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