Professional Indemnity insurance gives you protection if someone claims that the advice or service you or your business gave, wasn’t satisfactory and caused financial loss. If you or your employees give advice, design solutions, create plans or reports, or make recommendations, it’s essential to think about Professional Indemnity insurance.
- Protects employees as well as owners, principals and partners – some policies also extend cover to independent contractors you engage
- Gives you immediate expert help to negotiate and settle a claim
- Investigation, legal defence and court costs and expenses
- Defamation claims
- Unintentional infringement of intellectual property including copyright, trademarks, designs or patents
- The loss of any documents
- Any past liabilities that might come up in the future.
Commercial Risk Specialist, Bernie Kane, answers your questions
Q. Who needs Professional Indemnity insurance?
Bernie says: Anyone who gives professional advice or services for a fee needs Professional Indemnity insurance. Typical clients are lawyers, consultants, designers, architects, engineers, brokers and investment advisers, and real estate agents.
Q. I’m really good at what I do, why do I need it?
Bernie says: Even if you’re an expert in your field, qualified, experienced and very careful, we can all make mistakes. Professional Indemnity insurance protects you and your employees from professional negligence, or for simply making a mistake. The biggest benefit is that in a situation where a client alleges you did something wrong, even if you’re not at fault, your insurance will cover the cost of defending any court proceedings or legal claim against you.
Q. How much cover is enough?
Bernie says: For most people we recommend a professional indemnity limit of at least $1,000,000 plus claim defence costs, unless there is a contractual requirement for you to hold a higher amount. Check any client or service contracts you have to see if they specify a limit, or we’re always happy to review them for you.
Q. How are the premiums worked out?
Bernie says: Professional Indemnity premiums are very individual and based largely on you. The main factors affecting your premium are your occupation, your experience, your turnover, and any past claims against you.
Think you might need Professional Indemnity insurance?
From our clients
“We are always impressed with the personal service they provide and their professional approach to business. Meridian General have always made us feel like they are working for us and really care about our company and us as people.”Tania Siladi, Dragon Fly