Professional Indemnity

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 - for help protecting your assets and brand if your advice or insurance causes a client to take legal action against you.

"If you own a business, you can be liable for damages or injuries to another person or property ... consider [Professional Indemnity Insurance] for your business if the likelihood of legal action is high."

Australian Government, Business.gov.au

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 graphic designers, IT consultants and more. Regardless of your legal obligation, it's often a customer requirement that you have this cover in place.

What it cover

As a Wide-ranging insurance solution, professional indemnity cover may include anything from accidents to errors and omissions.

Depending on your policy, professional indemnity insurance can cover.

Civil Liability

Civil liability to a third party arising out of the conduct of their professional business.

Fidelity cover

Direct financial loss of the business caused by the dishonest or fraudulent conduct of an employee which is first discovered during the period of insurance.

Inquiry costs

The cost of defending an inquiry by a regulatory body into the professional conduct of the insured.

Advancement of costs and expenses

Additional costs and expenses incurred during a claim.

Defence costs

The costs involved in defending a claim triggered by the policy.