PROFESSIONAL INDEMNITY INSURANCE

Make sure a small error doesn’t cost your business big money

Anyone can make a mistake – but if your business is found liable for negligence, the costs can be financially devastating. Not only can it lead to an expensive lawsuit, but your business’ hard-earned reputation may be damaged as a result. That’s why professional indemnity insurance matters – help protecting your assets and brand if your advice or services cause a client to take legal action against you.

Who should consider it?
Professional indemnity insurance is mandatory in some industries, such as medicine, accounting, law and financial advisers – with the requirements differing from state to state.
But even in cases where it’s not required by law, it’s recommended for anyone who is providing professional services or advice in exchange for a fee – like engineers, graphic designers, IT consultants, and more. And regardless of your legal obligation, it’s often a customer requirement that you have this cover in place.

What can it cover?
As a wide-ranging insurance solution, professional indemnity cover may include:

  • Providing your client with misleading or negligent advice

  • Breaching your professional duty

  • Confidentiality and other privacy breaches

  • Defamation, libel or slander

  • Loss of or damage to documents

  • Infringement of intellectual property

  • Payment of compensation as a result of a claim, including but not limited to Court awarded damages

  • An award of legal costs against you

  • Reasonable legal costs incurred in defending or responding to the claim

  • Claim investigation costs

  • Disciplinary proceeding costs

  • Depending on the type of Professional Indemnity insurance policy you have, it may extend to provide cover for public relation costs to help protect your business’ reputation

What is typically not covered?

  • Intentional damage or misconduct

  • Contractual liabilities

  • Professional fees refunds

  • Known claims and circumstances that may have occurred prior to the period of insurance

  • Acts of fraud and dishonesty

  • Accidental injury and property damage ( these kind of claims would typically be covered by Public Liability insurance)