Professional Indemnity Insurance Sydney
Why do you need Professional Indemnity insurance?
Professional Indemnity Insurance provides peace of mind. Whether you are a fitness instructor, a financial advisor, a consultant, an architect or in the financial services industry, you have a duty of care to your clients. Anyone who is in the business of offering advice or services will need to consider taking out Professional Indemnity Insurance.
Professional Indemnity Insurance covers you for potential loss to your business arising from a client suffering a loss due to professional services they received from you. Professional indemnity covers you for professional negligence that arises from an act, error or omission in the performance of the professional services.
If you accidentally provide incorrect advice or unintentionally breach privacy or confidentiality, you can be held accountable, and may need to defend yourself against legal action. Defending a claim can be significant, particularly if a court case drags on, which is how Professional Indemnity protects you when an unhappy client makes a claim against you. Often small businesses are the ones who find it difficult to pay for these types of expenses as the legal costs can lead to financial ruin.
Consider the case of the Adelaide doctor who failed to detect a pregnancy of a woman who gave birth to a child born with Down syndrome. The doctor had Professional Indemnity insurance and thus able to defend herself in court.
Regardless of whether you win a legal case or not, reputational damage is real. Professional Indemnity insurance can cover public relations expenses to help your business in the face of negative exposure.
Selling your knowledge and giving advice needs to be balanced with a sound professional liability policy that suits you.
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 suitable 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.