Mistakes can happen in any profession, and when they do, the consequences can be serious. If your business is held liable for negligence, it can result in costly legal disputes and reputational harm. In such cases, the financial impact can be significant, threatening both your assets and the trust you've built with clients.
Professional Indemnity Insurance protects your business from the legal costs and claims for liabilities associated with allegations of negligence, professional misconduct, breach of duty or incorrect advice that you provide to a third party.
What is Professional Indemnity Insurance?
Professional indemnity insurance is designed to protect businesses and individuals who provide professional advice or services from the financial and legal risks associated with claims of negligence or errors. If a client alleges that your professional actions, advice, or services have caused them financial loss, this type of insurance can help cover the costs of legal defense, settlements, and damages, safeguarding both your business and reputation.
Professional indemnity insurance is mandatory in some industries, such as medicine, accounting, law and financial advisors - with the requirements differing from state to state. However, even in cases where it's not required by law, this type of insurance is still recommended for any those who are providing professional services or advice in exchange for a fee.
Request a QuoteDid you know?
The total cost of finalised Professional Indemnity claims increased to an average of $420m per annum over 2014 to 2021.
APRA: NCPD Analysis Report (2023)
There has been a 60% increase in large claims costs, driven by an increase in the volume of large claims (over $1m).
APRA: NCPD Analysis Report (2023)
Increased claims costs are being driven by occupation groups including financial, legal, medical and general consultants.
APRA: NCPD Analysis Report (2023)
