Professional Indemnity Insurance

While most of the time the question is, what is professional indemnity insurance, the real question should be: When do you need Professional Indemnity Insurance? Both questions come with a caveat of what ifs and maybes, but most of the time the answers can be pretty straight forward.

What is Professional Indemnity Insurance?

Professional Indemnity Insurance is a form of liability insurance that provides cover for neglect, error or omission by the firm or professional relating to their advice given rather than anything physically happening. Basically, if the person or company who takes out the policy has a complaint or claim made against them for any reason of professional misconduct, then this policy will protect the assets and reputation of the business. It will also cover legal costs incurred and any award judged against the policyholder. Professional Indemnity Insurance was devised to protect professionals who provide a fee for service or advice to their clients/customers.

When do you need to take out Professional Indemnity Insurance?

Simply put any company or individual that charges a fee for advice should take out this policy class. This insurance should be taken out by any business, large or small, who wants to protect their company’s assets and reputation. When a claim or complaint is made against a business, it can be very time consuming and expensive. It can also emanate from work performed years in the past. This policy operates differently to others in the sense that a policy must be in force when you get sued, not necessarily from when you provided the advice.

What does Professional Indemnity Insurance Cover?

Regardless of what type of claim/complaint is made against an individual with Professional Indemnity Insurance, most insurance covers will pay for the legal fees that are brought on by the claim, as well as any settlements that may arise from the outcome of the proceedings.

How can Norton & Co. Insurance help?

Norton & Co. Insurance are experts in Specialty Insurance Products, including Professional Indemnity Insurance. Whether you are a small start up looking to grow or a company that already has a large employee base, Norton & Co have the experience to tailor each insurance cover to the individual.

How can Norton & Co can arrange cover?

Negligence arising from a breach of professional duty, due to an act, error or omission including additional benefits such as:

• Fraud and dishonesty of staff
• Libel, slander or defamation against a third party
• Loss of client documentation
• Legal liability for damages and claimants’ costs/expenses arising from the act, error or omission/civil liability of the “Company’s” employees
• Wrongful or inadequate advice to client(s)
• Acting without proper instructions from the client
• Failure to act in accordance with client’s instructions or at all
• Failure to advise client
• Breaches of Trade Practices Act/fair trading legislation
• Breaches of statute – e.g. Corporations Law, Uniform Consumer Credit Code

Contact Us Today

If you know you need Professional Indemnity Insurance cover or just want to learn more about this particular insurance product, contact our team of experts who can offer sound advice and point you in the right direction.