Professional Indemnity

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 enquiries@professionalrisk.com.au.

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)

Professional Indemnity policies are "Claims Made" covers. Read More.

Latest News

Ransomware a threat

You sit down at your computer to check your email. It is Christmas time and you are getting notes from many different delivery companies saying that a package was unable to be delivered to your home. Please click on the reply button (link) to advise where or when the parcel can be redelivered.

It looks authentic, you have no reason to believe that it simply advice about collecting yet another parcel in time for Christmas. The company named is well known and reputable. Admittedly the email address looks a little strange. However, you also know there are many new domain names and extensions now, You click on the reply button…

Before you know it, your computer has downloaded a version of “Crypto-locker”. Your first thought is that expensive Anti-Virus software should have picked it up, but they can only pick up viruses they know about. This brand new release of “Crypto-locker has locked up your screen and is demanded $1,000 worth of “Bitcoin”. What the hell is Bitcoin?

The fact is Australian businesses are increasingly at risk of attack by malicious ransomware software. Hackers have moved on from targetting government and banks, and are now going after small targets on a wide scale.

They are setting small amounts because small business works out that it is cheaper to pay the Ransom than hire an IT expert to fix up the problem.

Ransomware is software that infects a user's computer or network, locking access to files until a sum of money is paid. Crypto-locker is an example.

For now, Cyber Risk Insurance is available and if your Insurance Broker or Adviser has not yet discussed this with you, then contact us.

This is a real threat to your business, can affect your income and Brand reputation. Just like other Liability policies, you should not take the risk un-insured because it can wreck a business.

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Above-average cyclone season looms

Insurers should brace for an above-average cyclone season due to weakening La Nina conditions in the Pacific Ocean and warmer than average sea temperatures to the north and east, according to the Bureau of Meteorology.

The cyclone season begins next month and ends in April.

The bureau says Australia has a 67% chance of an above-average season, while the west has a 59% chance, the northwest 63%, the north 56% and the east 58%.

In neutral years the first tropical cyclone to make landfall typically occurs in late December, while in La Nina years it usually hits in the first week of December, the bureau says.

Insurance Council of Australia spokesman Campbell Fuller says even an average cyclone season – consisting of 11 events, four of which make landfall – can be devastating.

“An above-average year could bring many more than that, and each one has the potential to cause catastrophic damage if it crosses the coast in a heavily populated area,” he said.

As reported by insurancenews.com.au

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