If you provide advice, design, or professional services, Professional Indemnity (PI) Insurance is essential protection.
This insurance pays your legal defence costs, in the event a customer complains that they followed your advice and suffered a financial loss, even if there is no real basis for the complaint. PI insurance will also pay court awarded damages, in the event your found responsible.
What Does It Cover?
The exact cover will depend on your occupation and scope of activities.
Broadly speaking Professional Indemnity insurance covers any negligent act, error or omission relating to:
- Misleading, inaccurate or negligent advice; breach of confidentiality or privacy;
- Breach of consumer, competition, and fair trading laws;
- Loss of documents;
- Infringement of intellectual property rights;
- malpractice, misdiagnosis, failing to order the appropriate tests, failure to treat;
- Defamation, libel or slander;
- Disciplinary proceeding costs;
- Claim investigation costs, including expert reports;
- Public Relations costs;
- Legal defence costs; and
- Payment of damages.
Who buys PI Insurance?
Pi insurance is usually purchased by IT consultants, accountants, engineers, real estate agents, building and health professionals and insurance advisers.
Why It Matters
Even with the best intentions and processes, mistakes happen. A single claim could lead to tens of thousands in legal fees or compensation. PI cover offers peace of mind, helping protect your reputation, finances, and ability to keep operating.
Is it Mandatory?
Many professionals are required PI insurance to be in place, by their association or law. So, check with your association to see what type and amount of cover you need to have in place. Many other professionals are required to have PI insurance in place by their clients.
Not sure what cover you need? Speak with your Insurance Adviser
As you can see, professional indemnity is a complex insurance, with a wide range of cover options. At Arbor Insurance, we are professionals who can work to understand your business, provide options to manage your professional risks and recommended insurance cover.