Professional Indemnity Insurance
Are you a business providing professional advice?
Professional Indemnity covers liability for claims that arise from a breach of professional duty by reason of any neglect act, error or omission committed, or alleged to have been committed by any person employed in the conduct of business activities.
It covers a part of the total damages awarded to clients in a civil lawsuit and legal costs associated with defending the client’s negligence claim. Clients may claim damages on the basis of an act, a breach or omission during the course of discharge of professional duty by an individual or a company.
So for example if you are an IT Professional, Project Manager, or accountant and you make an error or omission which causes a financial loss or injury to your client, he/she may take legal action in order to recover the losses suffered by him/her. If such a situation arises during the course of practicing your profession, the Professional Indemnity policy protects your assets as well as your reputation.
Professional indemnity insurance operates on the basis of the claims made during the period when the policy is in force. This is to say that the policy responds after a claim is notified and not at the time of occurrence of the event.
It is, therefore, very important that you renew your policy each year and maintain continuity as claims have often been made many years after the completion of services.
Depending on the policy you choose, it could include the following:
- Public Relations Costs
- Damages and claimant costs awarded against you
- Claims investigation costs
- Legal and defence costs
This is general advice only, please refer to the policy wording for full details.
For more information please contact Australian Elite Insurance Solutions to speak with one of our specialist brokers.