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.
In 2014 alone, professional indemnity and public and product liability claims increased 27.7%.
(Insurancenews.com.au ‘Claims up, premium down for PI and PL’, 2015)
$1,362 million of gross premium during the 2016 underwriting year.
(APRA, National Claims Policy Database, 2017)
701,000 PI risks written in the 2016 underwriting year.
APRA, National Claims Policy Database, 2017
Civil liability to a third party arising out of the conduct of their professional business.
The cost of defending an inquiry by a regulatory body into the professional conduct of the insured.
The costs involved in defending a claim triggered by the policy.
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.
Additional costs and expenses incurred during a claim.
