What is Professional Indemnity Insurance?
Professional liability insurance protects a company and its employees when they are sued for an act, error or omission in relation to professional advice given.
The policy covers the Insured against a legal liability to compensate third parties for injury, loss or damage due to the professional’s breach of professional duty in the conduct of their profession/business/occupation or that of their employees caused by an act of error or omission/civil liability.
Types of Claims
- Civil liability arising out of an act error or omission
- Libel, slander or defamation against a third party
- Loss of client documentation
- Legal liability for damages and claimants’ costs/expenses arising from the act, error or omission/civil liability of the “company’s” employees.
- Wrongful or inadequate advice to a third party
- Acting without proper instructions or failure to act in accordance with the third party’s instructions
- Failure to advise third party
- Breaches of Trade Practices Act/Fair Trading Legislation – e.g. misleading or deceptive conduct
- Breaches of statues – e.g. Corporations Law, Uniform Consumer Credit Code
What Is Covered?
Interests & Costs
Who Needs Professional Indemnity Insurance?
- Typically any professional who charges a fee for their advice or design that has potential to result in a financial loss.
- Contractual obligations where a professional may be engaged under contract for specialist services and advice.
Don't risk underinsurance or not being insured at all.
Having insurance is great (and needed), but the last thing you want is to find out you're underinsured or don't have insurance protection for something you should have (or worse thought you did have!). The right insurance policy is made up of multiple insurance products, which is why it's easier and better for you to use an insurance broker to find the perfect solution for your business.