If you provide a professional service, despite all your skills and qualifications, mistakes can and do happen. If a client takes legal action against you for the service or advice you provided, Professional Indemnity insurance, also commonly known as errors and omissions insurance, covers the cost of responding to a claim. Search for your occupation to get started or scroll down to learn more.
Professional Indemnity insurance is a type of liability insurance that provides cover for the financial consequences of neglect, error or omission by the professional or firm taking out the policy. If a third party makes a claim against any wrong-doing, mistake or breach of professional duty on your part, then this type of insurance may protect the assets and reputation of your business.
Protecting yourself against any legal action or claims of negligence could prove to be expensive and time consuming not to mention the damage caused to your reputation and business.
If an error or omission occurs when providing advice or services, you could be held responsible for any loss suffered as a result of that advice or service including those provided by employees under your supervision.
A Professional Indemnity policy can protect both you and the business from costs associated with such claims, including the legal defence costs. Cover includes costs related to compensation or damages to be paid as a result of the loss, should you be found responsible. This kind of insurance will give you the much-needed peace of mind and confidence to conduct your business.
Misleading or negligent advice. For example, if a psychologist treating a client with anxiety offers advice that inadvertently worsens the client's condition, leading to a claim of professional misconduct, this policy may provide coverage.
Defamation. For example, if a management consultant inadvertently makes a damaging remark about a client in a public email, they may be protected against potential defamation lawsuits.
Loss of Documents. For example, if a tax agent loses important financial documents, they might be covered for the expenses of restoring or replacing them.
Public Relations Costs. For example, if a building designer faces a lawsuit for alleged negligence, public relations coverage may assist with the costs of a campaign to restore their public image. Note: this does not apply to Mortgage or Finance brokers.
Intellectual Property Infringement. For instance, if a building designer inadvertently incorporates a copyrighted design element into their plans, this cover may protect them from IP infringement claims.
Joint Venture Liability. For example, if a psychotherapist enters a joint venture with a healthcare clinic to provide mental health services, they may be protected against liabilities related to that venture.
Statutory Liability Cover. For example, if a psychologist is fined by a healthcare regulator for non-compliance with statutory regulations, they may be protected under this cover.
Emergency Costs. The policies typically include provisions to cover emergency costs that may arise before consent can be obtained from the insurer. This cover offers a layer of financial security against specific risks that professionals may face in their business operations, ensuring they can continue to work with peace of mind. However, it is recommended that advice should always be sought from the insurer before incurring additional costs.
Any claims not directly resulting from the provision of professional services specified in the policies.
Known claims and circumstances that may have occurred prior to taking cover.
Dishonest, fraudulent, criminal, or willfully reckless acts or omissions by the insured.
Claims arising from any actual or alleged abuse committed by an insured person.
Claims arising from the actual or alleged bankruptcy, insolvency, administration, or receivership of the insured entity.
Any claims resulting from the insured being under the influence of alcohol, illegal drugs, narcotics, or intoxicants.
Claims that arise outside the territorial limits specified in the policies.
Accidental injury and property damage. This type of cover generally falls under Public Liability insurance. Note: The difference between Public Liability and Professional Indemnity can be confusing. If you're unsure yourself, be sure to check out this article we've written by clicking here.
A wide range of professionals may need professional indemnity insurance. Here are some of the more common occupations that take out professional indemnity cover with us.
Psychologists and counsellors
Mortgage and finance brokers
Yoga and pilates instructors
Tax agents and accountants
Management consultants
Building designers
Osteopaths
Podiatrists
Physiotherapists
Migration agents
Other Allied Health professionals. We have an exclusive Civil Liability package for health professionals such as beauty professionals, educational institutions, AHPRA and Non-AHPRA regulated healthcare professionals. Click here to learn more about this exclusive package.
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