Professional Indemnity Insurance

The cost of Professional Indemnity Insurance can vary based on several factors. The primary factor is the risk associated with the advice given, particularly if it could lead to physical injury or significant financial loss for your client. Other factors include your annual turnover, the number of employees providing advice, and the limit of liability you wish to insure.

Yes, Professional Indemnity Insurance, also known as Errors and Omissions Insurance, offers essential coverage for professionals across various industries. It protects against claims made by clients for negligent acts, errors, or omissions occurring during the provision of professional services. Both terms refer to the same type of insurance, providing identical benefits and coverage.

Brindabella Insurance Brokers can assess the type of clients you work with and the potential exposure if your work results in financial loss for your clients, helping you determine the appropriate limit of liability.

Professional Indemnity Insurance policies generally include a standard excess on all compensation claims paid. If your policy has a “costs inclusive” excess, you must pay the standard excess for any legal and defence costs incurred, regardless of a settlement claim for compensation. A “costs exclusive” excess means you do not need to pay an excess if only legal and defence fees are incurred without a compensation claim. This type of excess is more favorable but may not be available for industries with high claim frequencies, such as real estate or property management.

Professional Indemnity Insurance Policies are structured on a “claims made basis.” When first notified by a client of a potential scenario that could result in a claim, inform your insurance company immediately. Early notification allows the insurer to intervene and mitigate risks, potentially preventing a claim. Failure to notify the insurer within your policy period may result in forfeiting your cover.

Professional Indemnity Insurance policies require an active policy to make a claim at the time the claim is brought against you. Canceling your policy forfeits cover for previous work. To protect yourself, consider restructuring your policy to a “run off” policy.

No, Professional Indemnity Insurance and Public Liability Insurance are different. Professional Indemnity Insurance protects professionals providing advice or services, covering financial losses due to incorrect advice or failure to provide a service. Public Liability Insurance covers third-party claims of personal injury or property damage. Some Public Liability policies can include an Errors and Omissions extension for broader protection.

Yes, Professional Indemnity Insurance covers your business and employees for claims of breach of professional duty, advice, and recommendations that result in financial loss.

No, they are different. Directors and Officers Insurance, part of a Management Liability Insurance policy, protects directors, partners, and shareholders against claims of mismanagement from various sources. Professional Indemnity Insurance covers financial loss claims due to the advice and recommendations provided to third parties.