Professional indemnity insurance is one of those things that a lot of professionals assume doesn’t apply to them. After all, you’re not a doctor or a lawyer – why would you need it? The truth is that many professionals should have indemnity cover in place to protect them if something goes wrong. Today, we’ll be looking a little closer at professional indemnity insurance and who needs this cover in place.
What is professional indemnity insurance?
If you provide professional services or advice as part of your job, chances are that you’re going to need professional indemnity insurance. Indemnity cover will protect against the cost of damages or legal bills following a legal claim from a third party if they suffer damage or loss as a result your professional actions. This loss or damage could be the result of an act, error, omission or breach of professional duty. Without indemnity insurance in place, you wouldn’t have any financial protection if a third party decides to take legal action against you.
Why is professional indemnity insurance important?
No matter how good you are at your job, mistakes can happen and it’s all too easy for a third party to accuse you of negligence or a breach of a professional duty. For this reason, indemnity insurance offers you peace of mind that you’ll be protected financially. Professional indemnity insurance also helps to protect your reputation as it allows you to defend a claim by assisting with legal costs. Without indemnity cover, many professionals simply wouldn’t have the financial means to go through expensive legal proceedings. Although indemnity insurance is a good idea for most professionals, in some cases, such as with doctors and lawyers, this cover will be compulsory.
Which professions are most at risk of indemnity claims?
There are some professionals which are more at risk from indemnity claims than others. The obvious ones are, of course, doctors and lawyers, who require occupation specific professional indemnity cover. Other professions which are particularly at risk include:
- Financial planners
- Real estate agents
- Architects and design professionals
- Business brokers and stock agents
- IT professionals
- Recruitment consultants and agencies
If you’re not sure whether or not professional indemnity insurance is something that applies to you, speak to your insurance broker. They have the expertise to offer you personalised advice specific to your unique circumstances.
Indemnity insurance experts
If you need professional indemnity insurance in Australia, speak to the experienced brokers at GSK Insurance Brokers. We’ve become one of Australia’s leading insurance brokers and we have a network of loyal customers spread across the country. We take the time to get to know your situation and develop insurance solutions to cover your areas of risk. To protect your practice and your wealth, let our brokers take care of your indemnity over.
For a professional indemnity insurance quote, contact the team at GSK Insurance Brokers today on (08) 9478 1933.