Professional Indemnity Insurance

Professional Indemnity Insurance is designed to protect professionals who offer advice or services to clients. It provides coverage for your business against legal expenses and third-party claims for damages resulting from acts, omissions, or breaches of professional duty.

What is Professional Indemnity Insurance?

Professional Indemnity Insurance covers the amounts you may be legally required to pay due to actual or alleged negligence, errors, or omissions in the course of your professional work. This includes costs and expenses related to investigating, defending, or settling claims — sometimes in addition to the policy limit, or otherwise included within it.

A professional is typically someone with specialised expertise who, for a fee, performs specific tasks or offers advice to others.

Examples of professionals who may require this insurance include health practitioners, solicitors, accountants, engineers, architects, financial planners, IT consultants, management consultants, and real estate agents. In Australia, professionals and professional organisations have a high "duty of care" to those who rely on their services and expertise. This legal obligation requires them to exercise reasonable care when providing advice or services that could potentially cause financial, physical, or mental harm.

A Professional Indemnity policy may also provide protection for claims involving:

• Defamation
• Breaches of the Competition and Consumer Act
• Intellectual property infringement
• Privacy Act violations
• Employee theft
• Loss or restoration costs of documents, including electronic data
• Contractual liability
• Statutory liability
• Employment practices liability
• Legal costs for attending inquiries
• Public relations expenses