Professional indemnity insurance helps protect your assets and indeed, your reputation if your advice or services cause a client to take legal action against you.
This insurance is mandatory in many industries including medicine, accounting, law and financial advisers – with the requirements differing from state to state.
Why you should consider it.
Even where professional indemnity insurance is not mandatory for an industry, we strongly recommend it to any business that is providing professional services or advice in exchange for a fee. For example, if you are a structural engineer, IT consultant, or even a graphic designer, this insurance will cover you for any unexpected errors or negligence that may occur as a result of your services.
Even if you are outsourcing work to a contractor, you may still be legally liable for any errors THEY make, so it pays to be protected!
What does it cover?
Professional indemnity insurance is a wide ranging solution and may include anything for accidents to errors and omissions.
Obviously this is policy dependent, however, it can cover:
|Type of cover||Potential benefits|
|Civil liability||Civil liability to a 3rd party which results from the conduct of your business|
|Inquiry costs||The cost of defending an inquiry by a regulatory body into your professional conduct|
|Defence costs||The costs involved in actually defending a claim|
|Fidelity cover||The direct financial loss to your business caused by the dishonest or even fraudulent conduct of one of your employees|
|Advancement of costs and expenses||Any additional costs and expanse that you incur during a claim|
What isn’t covered?
Like other policies there are exclusions. These can include:
- Contractual or commercial liabilities
- Liability that results from fraud or dishonesty
- Depending on your occupation, third party bodily injury or property damage
Please talk to us about what may or may not be appropriate for your coverage.