Professional indemnity insurance at a glance

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 causes 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 advice – 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. Regardless of your legal obligation, it’s often a customer requirement that you have this cover in place.

What can it cover?

As a wide-ranging insurance solution, professional indemnity cover may include anything from accidents to errors and omissions.

What isn’t covered?

There are exclusions. There is also often a deductible or excess and limits on cover, so check with your insurance broker.

For example, this insurance may provide cover should:

• A web designer face legal proceedings after using an image for which it didn’t have a licence.
• An architect be sued for creating a flawed house design after the owners had to pay to fix a flawed extension.
• A marketing agency print a client’s brochure with incorrect contact details, resulting in the client commencing legal action against the agency.

If you are keen to find out more, contact us today to speak with one of our network of trusted General Insurance Brokers.