What is professional indemnity insurance?
If you provide a professional service, there are many areas where you may be exposed to liability for an economic loss as a result of an error or omission by you or one of your employees. These liability challenges and threats have increased due to a demand of accountability on experts giving advice, an increasingly more litigious society, increased competition in key product and service markets and an increasing customer expectation.
These threats and challenges are made worse with an increased innovation and change in many professions, outsourcing of services and ever increasing consumer protection legislation.
Who does it affect?
The definition of 'professional' has broadened in recent years. Due to this, professional indemnity insurance is now held by workers across a wide range of industries. Any professional person providing services such as advice, is regarded by their client as an expert and is therefore open to a claim being made against them should their advice be wrong.
Professional liability insurance was once associated mainly with such groups as accountants, solicitors, medical workers and engineers. Currently however, it provides protection for advice and treatment provided by people in many industries, including architects and designers, education workers, real estate agents, health workers and consultants. Although generally a voluntary form of insurance, certain professionals, including insurance brokers, legal professionals, medical practitioners and some accountants, are required to hold professional liability insurance. Professional contractors often need to hold professional indemnity insurance if working with government bodies, local authorities or private consulting firms.
The professional indemnity policies and conditions relevant to you will vary widely depending on your industry. For further information on the professional indemnity issues that affect you, contact the relevant industry body or talk to an experienced insurance broker such as CPR Insurance.
Why is it useful?
Losing a claim made against you can result in enormous costs and expenses. Some claims take more than five years to settle, leaving a large bill for court costs and legal expenses. Even when successful, defending a claim can be costly.
Who can help?
Professional indemnity is a complex and specialised area of insurance. If you want to know more about the professional indemnity policies and conditions relevant to your profession, contact a specialist insurance broker such as Cooper Professional Risks.
An insurance broker's role is to act as your representative and work in your interests, seeking the best cover at the best price for you from market knowledge. Call a good one. Call CPR.
Cooper Professional Risks Pty Ltd trading as CPR Insurance Services is a Brisbane based business. Robert Cooper can be contacted on 07 3123 1137 or 0439 530910. Email is firstname.lastname@example.org.
Cooper Professional Risks Pty Ltd trading as CPR Insurance Services is an Authorised Representative of National Adviser Services Pty Ltd (ABN: 60 096 916 184) trading as NAS Insurance Brokers (AFS No.233750)