Our insurance brokers' approach to risk management helps you to achieve the right level of professional indemnity insurance cover. We take the time to gain a deep understanding of your business and industry, and work in partnership with your team to implement a robust risk management program that protects you now and into the future.
Professional indemnity insurance protects businesses and consultancies against legal action and financial losses such as legal costs and damages claims resulting from alleged malpractice or professional misconduct, or any failure of duty in providing a professional service. It is also a mandatory requirement for some occupations or industry sectors.
Claims are usually based on allegations of negligence or claims of malpractice or professional misconduct — such as giving inappropriate or misleading advice or performing an action that has unintended consequences. Copyright, intellectual property or privacy violations, or failing to meet terms of consumer or fair trading laws are other potential legal grounds.
There are many moving parts to professional indemnity insurance — from public relations costs, through to civil liability and claims investigation, to name but a few — and the key is to have the cover relevant to your particular situation. Our insurance brokers can tailor a professional indemnity insurance solution to meet the specific needs of your business.
If you provide advice, consultancy or a service to clients or customers, professional indemnity is a critical consideration. The term 'professional' doesn't just refer to white collar occupations such as doctors, lawyers or accountants, it applies to anybody who sells a service based on their expertise and includes sole operators such as therapists, instructors, skilled tradespeople and consultants. The size of your business isn't a factor.
Professional Indemnity insurance covers your legal liability arising from the professional advice or services you provide to your customers. If you are not providing professional advice you do not require this cover.
For example, a client slipping and falling in a doctor's surgery would be basis for a public liability claim. But if they are injured because the doctor failed to diagnose their illness correctly, then that would be a professional indemnity claim.
If your business provides services or advice of any kind you run the risk of one of your customers being dissatisfied. And if they're sufficiently motivated they could bring a damages claim against you, threaten to bring an action against you or broadcast their opinions in a way that damages your business's reputation. Any of these scenarios could result in costs and financial losses for you.
In some states, for some occupations, holding professional indemnity insurance is a mandatory requirement before an operating licence is granted. Failing to comply with these requirements could also involve penalties and being barred from practising.
Professional indemnity insurance premiums vary depending on the level of cover required. It is important that you fully understand your risk exposure to ensure the insurance solution you purchase protects your business and reputation.
Every policy has its own set of exclusions which we ensure that you fully understand when discussing levels of insurance cover to meet your specific needs.
Among other exposures, professional indemnity insurance covers costs involved with allegations of or claims based on:
