Professional Indemnity Insurance provides critical protection so that your business can act and advise with confidence and peace of mind.
As a person or business providing professional services to the public, you are exposed to the risk that your actions or advices contain material errors or omissions, or simply fall short of the standards of professional care that are expected of you in your professional capacity.
Professional Indemnity Insurance protects you and your company against the cost of defending and settling claims arising from third party claims for breaches of duty of care and professional negligence on the part of you or your company’s employees.
Setting the limit of indemnity for your Professional Indemnity Insurance is extremely important as your company will become liable for any claim in excess of your chosen limit.
The appropriate level of Professional Indemnity Insurance for your business will depend on the type and size of your client contracts as well as your overall business turnover.
The law requires that a person claiming for financial loss be able to prove that the loss resulted from professional negligence or from a breach in their duty of professional care. And while this legal hurdle can be difficult to prove, the costs involved in defending such a lawsuit can be significant.