Professional Indemnity FAQ

You may need Professional Indemnity

You may need Professional Indemnity Insurance

For people who give advice to those that depend on this advice, a duty of care is owed. Generally these are people who charge for their services rather than sell products or perform manual work.

 

These can be the traditional “white collar” professionals such as Accountants, Architects, Solicitors and Financial Advisors through to Medical Professionals such as Surgeons and General Practitioners. Then there are the myriad of consultants who have expertise in specific areas that are engaged on short or long term contracts to Business or Government departments.

 

These professionals can be held accountable for the advice that they give. If their advice is incorrect or they have missed providing information and as a result it leads to their client’s suffering a financial loss, it is likely that they will seek compensation.

 

This means, they will be sued!

 

Professional Indemnity Insuranceor PI Insurance will protect you against the cost of defending claims where it is alleged that a client has suffered financial loss as a result of your error, omission or negligence. If you provide advice for a fee, we strongly recommend you have this cover.

 

It is important to note that Professional Indemnity is a “claims made” cover. That means you claim from the policy in force at the time someone brings a claim against you. Not the date within the policy period the advice was provided.  

 

The standard PI Insurance policy will cover you for work carried out after a retroactive date specified.  This is often set at the inception date when cover is first taken. So it will not cover any work performed prior to that retroactive date. However it is possible for the policy to be extended to include work you carried out in the past for a small additional premium which suits those who have been in business for a while before taking cover.

 

So even when care and skill is exercised, there is still the potential for a professional to make a mistake that causes financial loss to a client or for a client to allege that a mistake has been made, even if not.  Whilst such disputes are rare, if they do occur they can be costly. Professional Indemnity Insurance will, for a reasonable  premium, provide peace of mind against these risks. 

 

In addition, having PI Insurance will bolster the credibility that you are in business on your own account. It will give your clients the reassurance that there are sufficient resources to handle any recourse in the unlikely event of an alleged breach of duty, adding value to any contract.

  

Latest News

CPR joins Ausure

We would like to announce to all our Clients, Prospective Clients, Suppliers and Insurers, that Cooper Professional Risks Pty Ltd trading as CPR Insurance Services, will be leaving National Adviser Services Pty Ltd (NAS) and joining Ausure Pty Ltd as a Corporate Authorised Representative from 5 March 2018.

Fundamentally, there is no difference to you, except our Invoices will look a little different, and the Banking details will be in a different name and account number. Everything else at CPR stays the same.

There are a number of reasons we have made this decision, but the primary reason is for what we believe is best for our clients.

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Special offer to CPR Insurance clients

Employsure are providing a FREE Business Health Check to all our clients and gives you the opportunity to receive an analysis of the health and safety requirements in your workplace. Also. Employsure  will review your employment agreements as well as your wage rates helping you to avoid workplace claims.

Ordinarily this would cost you at least $1,250 but because you are a CPR Insurance client, it is free!

It involves the following review for you.

SAFECHECK

A specialist Work Health and Safety Consultant will visit your workplace and carry out:

A review of your business’ current work health and safety policies, procedures and systems to identify areas of concern or non-compliance

Following the review, you will receive a report summarising the findings and the health and safety

Status of your workplace

WAGE CHECK

A Wages Adviser will review your rates of pay and produce a Wage Check report.

The review will be conducted against the industrial instrument applicable

A report will be supplied advising if the wages are compliant and what steps to take to achieve compliance

CONTRACT REVIEW

A Document Consultant will review an employment agreement and provide recommendations.

The review will highlight compliance issues with the Fair Work Act 2009 as well as best practice

The report will make recommendations to achieve compliance and provide protection to your business.

This will remove any areas of potential dispute and risk

So what do you have to lose? Contact us on 07 3123 1137 and arrange 

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