What is Professional Indemnity Insurance?
Anyone can make a mistake - but if your business if 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 - help protecting you assets and brand if your advice or insurance cause a client to take legal action against you.
Who should consider it?
Professional indemnity insurance is mandatory in some industries, such as medicine, accounting, law and financial advisors - with the requirements differing from state to state.
But even in 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. And regardless of your legal obligation, it's often a customer requirement that you have this cover in place.
"If you own a business, you can be liable for damages or injuries to another person or property ... consider professional indemnity insurance for your business if the likelihood of legal action is high"
Australian Government, Business.gov.au
Did you know?
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)
$1362 million of gross premium during the 2016 underwriting year (APRA, National Claims Policy Database, 2017)
701,000 PI risks written in the 2016 underwriting year (APRA, National Claims Policy Database,2017)