What is Professional Indemnity cover?
Professional Indemnity Insurance (otherwise known as PI insurance) protects you and your business from financial loss and the cost of defending yourself and your business in the event of a claim being lodged against you by someone you’ve provided advice to. This is usually involved in cases with clients, and only covers the costs of defending claims against your business.
The scope of work within your industry as a working professional may lead to situations where you accidentally omit information that the client should have been aware of, or provide incorrect advice that leads to damage, injury, or financial loss. Professional Indemnity cover provides financial assistance in disputing and/or covering the costs for third parties affected by your business’ inaccurate professional advice.
What is Included in Professional Indemnity cover?
Professional Indemnity Insurance covers the legal costs and claims for disputes against your business where a person has followed your professional business advice and experienced loss, harm or damage in some form.
Professional Indemnity Insurance covers the costs of things such as
- The legal costs in regards to claiming, defending and resolving disputes made against your business
- The costs to hire public relations specialists
- Covering the costs for contractors and other employees that are part of your business and scope of liability
Get professional indemnity insurance tailored specifically to your unique business needs at Adroit today.
Who’s At Risk?
Anyone who gives professional advice is at risk of being held responsible for the results of that advice. This includes a range of professions including engineers, architects, marketing professionals, accountants, lawyers, and more. Some industries make it mandatory to have Professional Indemnity Insurance.
Situations that would put you and your business at risk include
- Breached contracts (by your business)
- Breached copyright or confidentiality (by your business)
- Important documents and information about your client had been lost or mismanaged
- Inaccurate or incorrect professional advice was provided
- The result of your inaccurate professional advice caused injury to your client/third party
Why Do You Need Professional Indemnity Insurance?
Even if you’re great at what you do and offer the best advice possible, you just can’t control everything. If someone brings litigation against you, with this cover you’ll be protected from financial loss and the cost of defending yourself.
When a client or other third party person approaches your business seeking compensation for professional advice that they believe was inaccurate, it may be easier to quickly compensate them and resolve the issue as soon as possible.
However, this would mean your business is admitting to fault in situations where that may be untrue. This is why you need professional indemnity insurance for your business – to ensure you have enough financial resources to take legal action and protect your business’ reputation.
Covering the costs of a legal case against your business could well and truly reach hundreds of thousands of dollars. Without Professional Indemnity Insurance, you would need to cover these costs out of pocket, which is something that many businesses aren’t able to do. Get a quote for professional indemnity insurance at Adroit to determine how you can properly protect your business from the unexpected.
Ad Adroit, we ensure your business experiences minimum interruption with the best and tailored insurance covers available
How Can You Protect Yourself?
There’s no sure-fire way to eliminate the risk of litigation, but by making sure you have the right coverage, you can minimise the fallout. We’ll work one-on-one with you to make sure you have the coverage you need.
Adroit are experienced risk advisers who gather the most suitable professional indemnity insurance for your business depending on your specific needs. We’re unbiased, informative, and provide the best support by clearly answering all of your questions and concerns about business insurance in easy and understandable terms.
Cost of Professional Indemnity Insurance
When choosing your professional indemnity insurance plans, going for the cheapest option may not be the best choice in protecting your business. What you need is a professional indemnity insurance cover that provides the right level of assistance for when the unexpected strikes, so you and your employees can overcome even the most challenging problems.
As with many other business insurance covers, your professional indemnity insurance cost will depend on the type of industry your business is in and the scope of professional advice you provide for your clients.
At Adroit, we sit down with you one-on-one to gain an in-depth understanding of your business and how it operates. After attaining a clear picture of your business’ services, we assess your options and provide accurate professional indemnity insurance quotes and options for you to choose from.
If you’re a business owner wondering what’s required and how much professional indemnity insurance is for your particular industry or provision of service, come and speak with our helpful team of risk advisers at Adroit today.