Professional Indemnity Insurance
If you’re in any kind of profession that gives advice or provides a service, for example: accountants, advertising agencies, management consultants or consulting engineers or any other advice based business, professional indemnity insurance is a necessity.
What Is Professional Indemnity Insurance?
Professional Indemnity Insurance, in short, covers a person or business against claims bought about by wrongful advice, design error, omission or other such event that causes a financial loss to the third party. Public Liability will only respond to claims for property damage or a personal injury sustained by a third party so this class of policy won’t help if there is only a financial loss to the third party. Many businesses don’t consider professional indemnity and in some cases it may not be required, however the right questions need to be asked to establish this. We ask the right questions!
What does professional indemnity insurance cover?
Professional Indemnity Insurance policies can be complex and certain wordings may contain clauses, endorsements and exclusions that need addressing to ensure that the cover sought for any particular occupation is right. There are dozens of Professional Indemnity insurers and we conduct business with the vast majority of them so we are well placed to give our clients the right advice, the right policy and the right premium.
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Frequently Asked Questions
Professional Indemnity insurance is a policy which protects the insured against claims from a third party who may have suffered some sort of financial loss due to negligent advice, a design error or omission or other such claim where a financial loss can be established due to inadequate advice.
Businesses and individuals who need Professional Indemnity are those who predominantly offer any type of advice, consultants or design professionals. An example of these occupations would be accountants, insurance brokers, engineers and architects. Professional Indemnity policies are also becoming more common place in many trade based occupations as technology progresses older style business practices make way to modern applications may leave areas of exposure to such businesses where a tradition public liability policy offers little or no insurance cover.
P I Insurance is simply an acronym of professional indemnity. They are one and the same.
Professional Indemnity Insurance covers any incurred financial loss to a third party which is suffered as the result of wrongful and negligent advice or an error or omission in any design of a product. It is designed to protect a business conducting such work against claims for financial loss to third parties.
The term ‘run off’ cover relates to professional indemnity insurance where the policy holder has decided to cease annual insurance due to retirement, finalization of a contract, contractual obligations or other reason. Run off professional indemnity cover will last for a set number of years as required. This may usually be to the end of legal statutes of limitation.
In general terms, no, however many insurers can offer an extension to a professional indemnity policy which covers property damage or personal injury as a result of the insureds negligence. This may only be suitable for simpler basic occupational risks and it would always be best to obtain advice on the suitability of doing this as there may be shortcoming in doing this over taking out a specific public liability policy.
Professional indemnity sums insured will vary and be dependant the occupation and business that is being covered. Covers, in general, may range from $250,000 upwards so it is best to seek advice on what level may be suitable for ones business.