Do you provide professional advice or services?

Any professional service provider can be faced with allegations about their service or advice. The costs of defending these claims can be extensive.

Professional indemnity insurance covers your legal liability for any negligence, error or omission that may take place in the delivery of your professional services. After all, mistakes happen – we’re all human.

What’s the difference between Professional Indemnity and Public Liability Insurance?

Public Liability Insurance covers your business for any claims by members of the public for injury, illness or damage. On the other hand, Professional Indemnity ensures that you’re covered if a client makes a claim against you for professional mistakes or negligence in any advice you offer them.

What does Professional Indemnity Insurance NOT cover?

Unfortunately, any damage caused – financial or otherwise – to your reputation can’t be insured against. That leaves it to you to just keep being as awesome as you always have been (and can be!) – even if you have made a mistake.

Al is a builder. He subcontracts specialist services, including architectural and engineering work.

Al is contracted to build a new home, but the architect and engineer he hires make an error in the slab design. The result is some serious structural defects.

The homeowner begins a lawsuit. Al, having subcontracted the works, is asked to repay a total of $105k in legal expenses and damages.

Al had a current Professional Indemnity Policy, ensuring that all of the costs, less the excess, were covered. Phew.