As part of our blog, Regional Insurance Brokers will look at different types of commercial/corporate, personal and liability issues that you could encounter that we can help find you the right insurance against.
Today, we’re going to focus on professional indemnity. We’ll explain exactly what it is and how professional indemnity insurance can help protect you if you’re ever accused of it.
What is professional indemnity?
It doesn’t matter whether your business is B2B, B2C, involved in the trades industry or involved in a heavily corporate industry. If you’re a business owner, chances are very high that you’re vulnerable to potential professional indemnity. However, the more consultancy-focused your business is, the more and more open to professional indemnity can be.
In a nutshell, professional indemnity is all about professional negligence. Negligence arising from a Breach of Professional Duty due to an act, error or omission. Say you offer a client a piece of advice on how they can improve profits. You assure them it will benefit them. So they follow your advice but then they lose money. They lose thousands of dollars because of negligent advice you offered them that they followed. In their eyes, your professional advice has cost them. This is what professional indemnity is.
Professional indemnity can occur in numerous industries. For example, you could run a company that has provided advice as part of your services to mining sites and you may accidentally forget to disclose or include certain information that leads to financial losses distress on their part. They could then claim negligence on your part and sue.
How professional indemnity insurance protects you
Professional Indemnity Insurance or PI Insurance will protect you against the cost of defending claims where it is alleged that a client has suffered financial loss as a result of your error, omission or negligence. If you provide advice for a fee, we strongly recommend you have this cover.
It’s in the interest of you, your business and those who represent your business that you have this insurance. Because regardless of whether you are responsible for professional indemnity or someone has made an unfair claim against you, the costs of fighting that claim are still very real.
At Regional Insurance Brokers, we can find the right insurer for your company who will cover you for professional indemnity and any other important insurance policies. We remove the hard process of comparing and insurers and come up with an insurance plan tailored to your needs.
To find out more, visit our contact page to find your nearest Regional Insurance Broker or to fill out the email form.