What is Professional Indemnity Insurance?
Professional Indemnity Insurance protects professionals against claims of negligence or breach of duty made by a client as a result of receiving professional advice or services from your business.
If someone alleges that you’ve made a mistake, overlooked a critical piece of information, misstated a fact or they have misinterpreted you in the course of your work, and this results in a financial loss for your client, then they may take legal action against you to recover these losses.
Whether or not the allegation is true, Professional Indemnity Insurance seeks to protect your assets, your reputation, and the contents of your back pocket should this occur. This means you can continue in your business without the stress of financial or reputational ruin should a claim arise.
The risk of claims against you isn’t always determined by your skill or level of professionalism. There is always the risk of an unhappy client making a claim against you. While you can’t control this, we’re here to make sure you have some control in what happens next.
Regardless of the merit of a claim, your Professional Indemnity Insurance will pay for your legal defence as well as any judgments or settlements that you or your business may have to pay to compensate the suing party, up to stated policy limits.
Going to court to defend a claim might be in your ‘too hard basket’ but consider not going could be viewed as an admission of guilt and have worse repercussions on your reputation!
Protecting your back pocket and reputation
Whether prepared for it or not, a claim must be defended – ignoring it won’t go away.
Don’t despair. Professional Indemnity insurance is your best defence when faced with a claim. You get the assistance of an expert insurer by your side to protect your finances and safeguard your reputation, as well as providing peace of mind knowing you’ll still have a business when it’s all over.
What does Professional Indemnity Insurance cover?
Professional Indemnity insurance typically foots the bill for things like:
- Legal and defence costs
- Related claims investigation costs including those by a professional body
- Court attendance costs
- Compensation costs awarded to the claimant
- Public Relations costs
Did you know?
In many instances, the costs of defending a claim far outweigh the costs of the actual compensation awarded, particularly for cases that take several months or years to defend.
If you have to make your debut in front of the judge, make sure it’s not costing you an arm and a leg!
Who needs Professional Indemnity Insurance?
Anyone who provides professional advice or services to a business or individual
For more advice contact us.