Professional Indemnity FAQ

Mediation - a way to settle Professional Indemnity claims

Mediation - a way to settle PI claims

It may surprise you to know that 99% of Professional Indemnity Claims never make it to Court and that really is a good thing.

I myself have never had any claims go to Court but they have been very close. It adds a huge cost to the value of a claim and this can be avoided by use of experienced solicitors skill (which is why insurers pick very good solicitors to handle claims).

Or instead it can lead to the use of an independent, impartial, and respected third party (called the conciliator or mediator) to help in settlement of a dispute. This is a quicker, less humilating and above all cheaper way of resoving the matter, instead of opting for arbitration or litigation.

Unlike an arbitrator, a mediator has no legal power to force acceptance of his or her decision but relies on persuasion to reach an agreement. Also called conciliation. Good experienced mediators are highly valued due to their skill to Chair a meeting and diplomatically bring about a compromise to each party.

Another way claims costs are kept down and therefore premiums.

Latest News

Illegal or unsuitable cladding now a big issue

Why we have laws, regulations and Australian standards? Because some people just do the wrong thing all for the sake of making money. The cladding issue is the subject of 4 Corners program on the ABC.

We are already seeing Insurance policies now placing exclusion endorsements into their policies excluding and claims relating to illegal cladding. We are seeing Governments demanding Audits of all existing buildings above a certain height. There are accusations of Builders taking other short cuts such as on Wiring, Pipes and sprinkler systems. 

The question is, who is to blame? Who will take responsibility?

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Small business in NSW

Right after the NSW Government have reimposed Fire Service Levies, they have at least made an effort for small business. The government has announced it will abolish stamp duty on a number of policies taken out by a small business. This is an important change.

What is a small business? In order to gain the exemptions, the business must be a small business for Capital Gains Tax Purposes for the income year in which the insurance is effected or renewed. A small business for CGT purposes is: “an individual, partnership, company or trust that is carrying on a business, and has an aggregated turnover of less than $2 million.”

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