Professional indemnity insurance is mandatory in some industries, such as medicine, accounting, law and financial advisers – with the requirements differing from state to state. But even in cases where it’s not required by law, it’s recommended for anyone who is providing professional services or advice in exchange for a fee – like, graphic designers, IT consultants and more. Regardless of your legal obligation, it’s often a customer requirement that you have this cover in place.
Anyone can make a mistake – but if your business is found liable for negligence, the costs can be financially devastating. Not only can it lead to an expensive lawsuit, but your business’ hard-earned reputation may be damaged as a result. That’s why professional indemnity insurance matters – for help protecting your assets and brand if your advice causes a client to take legal action against you.
| Type of cover | Potential benefits |
|---|---|
| Civil Liability | Civil liability to a third party arising out of the conduct of their professional business. |
| Inquiry costs | The cost of defending an inquiry by a regulatory body into the professional conduct of the insured. |
| Defence costs | The costs involved in defending a claim triggered by the policy. |
| Fidelity cover | Direct financial loss of the business caused by the dishonest or fraudulent conduct of an employee which is first discovered during the period of insurance. |
| Advancement of costs and expenses | Additional costs and expenses incurred during a claim. |
Michael is an engineer who designs the supporting foundations of a residential property. He makes an error with the site calculations – which leads to the slab cracking and damage to the property of the owner. His company is liable for this loss, which could be anywhere between $150,000 up to the full value of the house. But because Michael has professional indemnity insurance, he’s covered for this amount – as well as any legal expenses if the matter goes to court.
Important note
This general information does not take into account your specific objectives, financial situation or needs. It is also not financial advice, nor complete, so please discuss the full details with Axle Insurance Brokers whether this type of insurance is appropriate for you. Deductibles, exclusions and limits apply. This type of insurance is issued by various insurers and can differ.
Axle Insurance Brokers Pty Ltd
ABN 88 681 367 760
Corporate Authorised Representative (No: 1313968) of McLardy McShane Partners Pty Ltd
AFSL 232987 I ABN 14 064 465 309
Level 3, Building 7, Botanicca Corporate Park, 570-588 Swan Street, RICHMOND VIC 3121
Give us a call 1300 356 657