5 Things You Need to Know About Professional Indemnity Insurance

5 Things You Need to Know About Professional Indemnity Insurance

November 07, 2018 Views: 1137
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Professional Indemnity is a hot topic in insurance circles and businesses need to pay attention. A number of insurers have stopped providing the insurance, changed their small print and significantly raised prices. Here are 5 things you need to know:

1) PI - does not mean Magnum PI!

In insurance it means Professional Indemnity and its designed to cover financial damage caused from negligence, error or omission, misstatement or misrepresentation arising out of a professional service. Public liability insurance does not cover any advice you give - it covers physical damage.

2) Who needs it?

Anyone selling their skills and specialist knowledge based on their qualifications or historic experience. For example, consultants, designers, engineers, IT services, intermediaries and advisors.

3) Its more than insurance for your mistakes

It can also defend you should your client accuse you of a mistake (even if its unfounded), cover you for accidentally releasing confidential information, saying something deemed defamatory and the unintentional use of third party images.

4) You are still liable even if you didn't charge for the advice

It doesn't matter whether you charge a fee or offer some friendly free advice. Professionals owe clients a duty of care and if something bad happens, there could be a claim.

5) Watch out if you are in design and construction.

Some insurers are changing policy exclusions. These could lead to you be liable for cladding claims from work you've done in the past 15 years! Connect with Penny Collins today to learn more. Call us at Capital Mutual Insurance Brokers and we will walk you through what all this means for you and help you every step of the way.

General Advice Warning: This advice is general and does not take into account your objectives, financial situation or needs. You should consider whether the advice is appropriate for you and your personal circumstances. Before you make any decision about whether to acquire a certain product, you should obtain and read the relevant product disclosure statement.

Penny Collins ABN : 14064465309, AFSL : 232987

Advisr does not provide advice and does not hold a financial service license (AFSL). All information above has been provided by Penny Collins.

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