Professional Indemnity Insurance is designed to safeguard mainly professional services contractors and their assets should they be hit with a claim for breach of their care of duty towards a client. But do you really need it or is it a stretch for your profession? Find out here if Professional Indemnity applies to your business.
Who is Professional Indemnity for?
Professional Indemnity Insurance is traditionally best suited to ‘professional’ services clients such as:
- Lawyers
- Accountants
- Financial planners
- Engineers
- Accountants and bookkeepers
But it is most certainly not limited to these industries. Due to the rise in small businesses in Australia and many entrepreneurial businesses opening their doors, Professional Indemnity can be applied to a board range of businesses offering advice including:
- Marketing professionals
- Consultants such as recruiters, business, or management professionals
- IT professionals
- Designers such as web, graphic, interior, and even fashion
- Personal trainers
- Dietitians or independent health professionals
- Teachers and tutors
- Writers and journalists
This is by all means not a comprehensive list, however as you can see the list applies to businesses which provide advice or guidance to their clients. If you do so too, you should consider Professional Indemnity Insurance. As money is exchanged for this advice on the assumption that it will be correct and positive for the client, there is the risk to contractors that something could go wrong with the advice given.
What can go wrong?
Things that can go wrong and may result in a claim against you include:
- Incorrect advice
- Advice leading to a financial loss or injury, depending on your profession
- Omission of information
- Loss of data or files
- Negligence
For example as an IT professional you may write a program that is unsuitable for your client, recruiters may not complete a proper reference check, journalists could write incorrect information and ruin a publications reputation, or personal trainers could give the wrong fitness advice and cause injury. And of course in the case of accountants, lawyers, or engineers – the wrong advice can lead to serious financial loss also.
Protect yourself as a subcontractor
Contractors should consider Professional Indemnity Insurance as part of a comprehensive insurance package for their business. Check with your broker to make sure you are fully covered to industry standards. Call us on 1300 GET COVER today, email at info@contractorcover.com.au or fill in our easy online quoter. All information provided above is of a general nature, if you need specific advice we recommend speaking to a broker.
