logo
logo
Sign in

Who Needs Professional Indemnity Insurance?

avatar
Peter Blanco
Who Needs Professional Indemnity Insurance?

Professional Indemnity insurance is something you should think about if you're a seasoned architect, engineer, or life coach because it can help in protecting your company. Your clients depend on your experience and professional counsel, and even when you take all the necessary precautions to provide a high degree of service, unforeseen claims may still happen.


Any company that offers specialised services or expert advice should think about purchasing professional indemnity insurance australia. Let's look more closely at the specifics of professional indemnity insurance.



What is Professional Indemnity insurance?

The purpose of professional indemnity insurance is to cover losses incurred by your company as a result of real or alleged negligent acts or omissions while rendering professional services or offering advice. The costs of handling or responding to claims that are covered by the policy and which are covered by professional indemnity insurance can also be helped by this insurance. You should take the help of an insurance broker to understand the situation better.


What kind of professions might need it?

The purpose of professional indemnity insurance is to safeguard professionals who provide expert counsel or services. We've honed in on just a handful of the common occupations that may need it because there are many other kinds that fit into this category.


  • Accountants
  • Allied health specialists
  • Architects
  • Bookkeepers
  • Mortgage and finance brokers 
  • IT specialists
  • Building engineers
  • Consultants
  • Disability advocates
  • Engineers
  • land explorers
  • Nurses
  • Individual trainers
  • Pet professionals
  • marketing experts
  • alternative and massage therapists
  • migration officers
  • Project managers
  • Social workers
  • Tax agents
  • Tutors
  • Psychologists
  • Real estate agents
  • Recruitment consultants


How and why is this a requirement?

Part of your obligation as a professional is to give relevant and competent advise that suits and aid your client's demands. This might be everything from engineers offering suggestions on a new building to personal trainers designing a specific training programme for a customer. If a customer were to sue you for negligent acts or omissions in the provision of your professional advice or services, your Professional Indemnity policy would offer financial protection. Professional Indemnity insurance may be necessary in order to join some industry boards and bodies, depending on the sector you work in. Also, it is frequently demanded of individuals who take on contract employment, with minimum standards of coverage frequently established.


Your professional indemnity insurance coverage will normally cover the following among other things:


  • payment of damages awarded by a court as a result of a claim, including but not limited to
  • legal fees awarded against you
  • reasonable legal fees expended in fighting the claim or reacting to it
  • investigation fees for claims
  • the cost of the disciplinary process



Claims for professional indemnity may result from routine business operations including delivering bad advice, making an error in judgement, or prescribing the wrong diagnosis or course of treatment. It can also refer to things like exceeding a budget and failing to meet deadlines that you might have promised a client. This is a case study of a true claim where professional indemnity insurance helped an architectural firm out financially.


The price of your professional indemnity insurance coverage is based on a number of factors that are particular to your company. The cost of your insurance may vary depending on the operations your company engages in and the level of risk to which it is exposed.


Some of the elements that affect how your insurance's cost is determined include the following:


  • Your company's earnings
  • Size of your company
  • Required coverage amount
  • Who is the policy intended to protect? Are they capable of doing the task?
  • History of claims


collect
0
avatar
Peter Blanco
guide
Zupyak is the world’s largest content marketing community, with over 400 000 members and 3 million articles. Explore and get your content discovered.
Read more