Professional Indemnity Insurance
Any business that provides professional services or advice in pretty much any industry is liable to be sued for their bad advice given or negligence.
In some industries like medical, financial, and law, businesses and independent contractors are legally obliged to take out a professional indemnity insurance policy.
But it’s surprising to many people how quickly they can encounter a serious financial loss because of a simple mistake.
Such claims can also have serious implications on your reputation, which is why every business owner should have the right protections in place.
What Does Professional Indemnity Insurance Cover?
Professional indemnity insurance covers situations where the professional services and advice you provide to clients may result in personal or property damage.
As soon as your advice was exchanged for a fee, you’re exposed to legal liability should that advice contain an error.
An example would be a structural engineer making a miscalculation regarding the thickness of a concrete slab. Claims arising from this error could run into six or even seven figures, which is why professional indemnity insurance is such an important factor.
Similar situations can happen in any industry, from IT to telecoms, and logistics to construction.
One thing our team at Aspire Insurance always discusses with clients is the potential to combine two usually separate covers into one.
Combining Public/Product Liability And Professional Indemnity Cover
If your business provides advice to clients in a commercial space or provides products along with that advice, then you should be protecting yourself from product/public liability claims as well as professional indemnity.
But most people believe these need to be two separate policies, when in fact there are some products available that combine the two for certain industries.
If you currently have such covers provided under two separate policies, then talk to our team at Aspire Insurance on 1300 886781 today.
We can fully assess your business and provide you with a policy review and no-obligation quote to help you gain maximum financial protection at the best possible premium.
What Are The Biggest Risks You Could Be Exposed To?
We have encountered countless claims arising in many different industries over the years, but there are three areas where we have seen significant risks when professional services and advice have been given with simple mistakes.
If any of these risks sound like they could apply to your business, then you have to make sure that your professional indemnity insurance has specific wording to cover them.
1 – Computer Virus And Hacking Attack
This would be specialised policy wording to cover a third-party financial loss due to hacking or a computer virus.
So many businesses these days are completely reliant on sending information in a digital format. And if the files you send happen to be infected with a virus or malware that results in damage to your clients, then you could face some serious claims.
Similarly, if you store confidential information about your clients and you become the victim of a malicious cyber-attack that exposes that information to the public, then you could be legally liable.
This is an important factor to make sure you have covered.
Most professional indemnity insurance products offer this as an optional extra. An alternative is to take out a separate policy to cover cyber security issues, which might be a better option depending on the size of your company or potential exposure.
2 – Claims Preparation Costs
Unlike a home insurance claim, claims arising against professional indemnity insurance can become very complex situations. They might require specialist support and lawyers, just to have the claim properly prepared.
With such claims sometimes running into the hundreds of thousands of dollars, it’s important to make sure that your policy covers you for claims preparation costs.
This is not always automatically included, and unless you have experience in analysing policy wording, it can be difficult to address this yourself.
3 – Run-Off Cover After A Sale Or Merger
This is an optional extra available on some professional indemnity insurance policies but could be particularly valuable to anyone planning to sell their business or merge with another.
The policy wording would cover the owner for claims arising on projects completed before sale or merger, but where the claim occurs after the original owner is no longer operating.
When it comes to professional indemnity, it can be very difficult to fully understand if a policy is providing you with the right level of protection.
Our team at Aspire insurance has the necessary experience and will be able to provide you with a no-obligation policy review so that you can gain maximum liability protection.
What Do You Gain By Partnering With Aspire Insurance?
We ensure that all of our clients receive professional advice for the best possible protection of their financial interests.
But our professional services go beyond just that.
24/7 Client Support
Professional indemnity insurance claims can be a highly stressful situation, and we provide our clients with a 24/7 support service to help you be better prepared if it ever comes to such a claim.
Policies Tailored To Your Needs
Many businesses operate in industries with unique requirements. We ensure that the professional indemnity insurance policy you choose is tailored to your needs to avoid unnecessary risks.
Annual Cover and Premium Review
Professional indemnity insurance products are regularly changing, with new and innovative optional covers becoming available. We provide all of our clients with a full review at each policy anniversary to make sure you get the best cover at a competitive premium.
Contact with a real person who fully discusses all your needs is an important part of taking out any type of insurance products. It’s one of the main flaws with many online quoting systems where you could end up with an inadequate cover.
Call Us Today
If your insurance for professional indemnity is up for renewal, or you have any concerns about how well it’s actually protecting your financial interests, then call our team on 1300 886 781 today.
We will guide you through the entire process and make sure that all the possible protections are in place so that you don’t have to worry about how a claim would affect your business.