What to Consider When Buying Professional Indemnity Insurance

If you provide services or advice in a professional capacity, chances are that you’re going to need professional indemnity insurance. This cover is designed to protect you if a third party suffers loss or damage as a result of your actions, following an act, error, omission or breach of professional duty. When it comes to choosing a policy, there a few things you need to consider to ensure you have the best cover possible. Let’s take a look!

Consider your specific risks

One of the first things you need to do is consider the specific areas of risk involved in your profession which need to be covered by indemnity insurance. This will depend on the type of work you do, the services or advice you provide, contractual obligations, the number of clients you have and the potential cost of a claim.

Level of cover

Once you’ve found a policy that you like, you then need to choose your level of cover. The purpose of professional indemnity insurance is to protect you financially following a third party claim, so you need to ensure you have a level of cover which matches your potential risks. For example, don’t opt for the lowest level of cover if your profession has a high risk of expensive claims.

Look at exclusions

This is an important one! The last thing you need is for something to happen and then you discover too late that you’re not covered with your indemnity insurance. Although every policy will have exclusions, make sure you take a close look to ensure that none of the exclusions leave you exposed. Remember that it’s best to opt for cover which is tailored to your professional needs.

Experience of the insurer

Another area to consider with your professional indemnity insurance cover is the experience of the insurer when it comes to offering indemnity cover, particularly in relation to your particular profession. Certain insurers often specialise in particular professions and tailor their policy to suit your specific needs, so ask about how much experience they have with insuring your area of work.

Ask an insurance expert

If you want the have the best cover possible, it’s best to speak with an insurance broker. They have the necessary industry experience to help find a policy which suits your needs and will look at a range of products from different insurers. They’ll also take a close look at the fine print on your behalf so there are no surprises when it comes to claim time.

At GSK Insurance Brokers, we offer professional indemnity insurance Australia to protect to a range of professionals. We take the time to analyse your situation, identify your areas of risk and then find smart insurance solutions. Our experienced brokers will help protect your practice and your wealth by covering your risks for the ultimate peace of mind.

For a professional indemnity insurance quote, contact the team at GSK Insurance Brokers today on (08) 9478 1933.

August 6, 2018

By Graham Knight

Founder and Managing Director of GSK Insurance (established in 1981). Graham draws upon more than 50 years’ experience in the insurance industry, working in both insurance and broking across various private, public and government sectors in Australia.