Professional Indemnity insurance is for anyone who provides advice or a service to clients or customers. With professional indemnity insurance, you and your business are protected against claims and legal costs for damages caused by acts, omissions or breaches that occur in the course of business.
So if you, your partners or staff do something or neglect to do something which causes a customer an injury or financial loss, you can be held legally responsible. A claim of malpractice, professional misconduct or breach of duty is time-consuming and expensive to defend, so professional indemnity insurance is essential.
Who is Professional Indemnity Insurance for?
Professional indemnity insurance policies can be tailored to suit the professional it covers. There is a broad range of professionals who provide a service that may result in a claim. Below is a small sample of these professions.
- Management Consultants
- Project Managers
- Bundled Insurance Packages
Some professionals belong to memberships or industry bodies that set a minimum level of professional indemnity insurance they must hold. For those who require professional indemnity insurance, they may also request a policy that covers product liability insurance and public liability insurance.
If your business sells a product, then product liability insurance will cover you for claims of personal injury and property damage caused by your product. Public liability insurance will cover your business if it operates in a public area from injury and property damage claims from customers as well as the general public.
An Example of a Claim
An engineer was late in releasing drawings for a large commercial building to a structural steel fabricator which caused the building to be delivered to the client late. The cost of the late opening resulted in considerable costs as contracts had to be re-written and tenants had to delay their move. The client placed a legal claim against the engineer to recover the financial losses. The engineer claimed against his public liability insurance to defend the legal claim in court and pay costs.
If you have any queries about Professional Indemnity insurance, don’t hesitate to contact Phoenix Insurance on (08) 9367 7399 or contact us.