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Why do Professionals need Insurance?

Professional services are highly diverse – covering occupations from accountants to IT consultants to graphic designers. Yet there’s a common thread between them: the risk that their service or advice could lead to a client’s financial loss.

Regardless of whether you’re a consultant, designer, agent or any type of skilled professional, you may encounter an unhappy customer who may lodge a claim against you at some point. Professional services insurance can help give you peace of mind that you have protection for your business.

That’s why professional indemnity insurance – along with public liability insurance – is integral to our professional services insurance solutions.

These provide cover for claims of incorrect or misleading advice and third-party injury or property damage (at minimum). Depending on your occupation, other risk exposures we can arrange cover for include:

  • Breach of duty
  • Breach of privacy
  • Negligence
  • Defamation
  • IP infringement.

Cover we can arrange

slected option

Professional indemnity and public liability insurance

Help protect your professional services business against claims of incorrect or misleading advice, breach of duty or negligence, third-party claims of injury or property damage, and legal costs and expenses.

Up to $10 million professional indemnity cover limit

The limit of liability is the maximum amount that can be provided under the insurance policy.

Tailored insurance solution depending on your industry

Certain minimum qualifications may apply.

Choose from $5 million, $10 million or $20 million public liability cover limit

The limit of liability is the maximum amount that can be provided under the insurance policy.

Coverage Australia-wide

General exclusions

These are some examples of the general exclusions under professional indemnity insurance. Speak to your broker to find out more.

Existing circumstances

This professional indemnity policy does not cover claims or circumstances that have existed – and that you are aware of or know about – since before your policy start date.

Intentional damage

This professional indemnity insurance does not cover any costs associated with intentional property damage or personal injury you may cause to clients or third parties.

Contractual obligations

This policy does not cover costs or expenses that arise due to your compliance with contractual requirements or obligations that you and a client had previously agreed to.

Bankruptcy

Professional indemnity insurance may not cover loss, costs or claims that arise out of – or are connected with – your business’s bankruptcy, insolvency or liquidation.

Can’t find your occupation?

If your occupation isn’t listed above, connect with Marsh specialist broker. An experienced broker will spot your unique set of risks, match you to the right choice, and advocate for you on price.

Why do you need to consider professional services insurance?

When you work for yourself, your business is more than your reputation – it’s also your livelihood. Regardless of whether you’re a consultant, designer, agent or any type of skilled professional, you may encounter an unhappy customer who may lodge a claim against you at some point. Professional services insurance can help give you peace of mind that you have protection for your business.

Why Marsh?

Why should you choose Marsh to arrange your professional services insurance?

Trusted by 130 associations

We are proud to be the endorsed insurance broker for more than 130 Australian industry groups and member associations, arranging insurance that needs of professionals from management consultants to tax and travel agents.

Tailored cover

Our brokers have spent decades arranging insurance for professionals across Australia. This – plus our expertise in risk consulting, insurance broking and claims advocacy – means we can tailor comprehensive insurance solutions to business of all sizes.

Claims support

Handling an insurance claim can quickly become overwhelming, especially when your time is stretched to the limit keeping your professional services practice going. We help take the load off by managing, negotiating and settling claims with insurers on your behalf.

Frequently asked questions

If a claim is made against you, you must notify your broker as soon as possible. The next step is to fill out a claims form . You’ll need to include details of the incident, including when you first became aware of it. You’ll also need to note any written third-party allegations or demands, as well as the scope of the work completed. Next, contact Marsh to send us your completed claims form along with a copy of the contract or service agreement you hold with the claimant.

It's important to familiarise yourself with (and closely follow) all claims conditions in your policy wording. If you don’t, your insurer may not cover your claim.

We want you to get the best possible outcome, so we will advocate for you throughout the entire claims process. Claims can be stressful, but we strive to make the process straightforward.

A number of different factors can influence the cost of professional services insurance, such as the services you, company size and revenue.

Make sure when requesting a quote, that the declared value of the business is accurate so the correct premium and cover for your business can be arranged.

Professional indemnity insurance covers up to $10 million. Public liability insurance covers up to $20 million.

Claims made means that you (the insured) are covered for claims made against you while your insurance policy is active – even if the incident happened in the past.

Professional indemnity policies provide a 'claims made' basis of cover. Why? Because advice and service errors in many professions may not be discovered until months or even years after the mistake was made.

Therefore, a professional indemnity policy or 'run-off' policy must be in place for a claim to be met by an insurer.

It’s also important to note that, if the limit of indemnity was changed, the limit that applies is the one purchased when the claim is notified – not when the work was completed.

Yes. Without the proper cover, your accounting practice or freelance accounting business is exposed to a plethora of risks. If a claim is made against you, you’ll need to self-fund the damages and expenses – including the legal costs of defending the claim.

Your professional indemnity policy can cover claims for incidents that occurred before your current policy was active. A retroactive date defines how far back in time those incidents can be.

Imagine you have just found out that work you performed in June of 2021 led to a loss. It’s now March of 2023. If your retroactive date is 1 February 2021, then your policy cannot cover claims made against you for this particular incident.

Your retroactive date will change each time you renew your policy or buy a new one. Some retroactive dates can be unlimited, so it’s important to pay attention to yours. 

Inclusive limits and exclusive limits both relate to legal defence costs. In an inclusive limit, legal defence costs come out of your policy limit. In an exclusive limit, they are covered on top of your policy limit.

Legal defence costs can be very high, so it’s worth checking quotes carefully to understand if your limit is inclusive or exclusive. 

A run-off insurance policy can cover you for claims made after your business has ceased trading. If you retire or close your business – or if your business is wound up – you can buy run-off cover to keep you insured for claims made against you due to acts, errors and omissions that took place in the past.

You can buy a run-off policy on an annual or multi-year basis with one upfront premium payment. Contact Marsh if you’d like to learn more.

Our team can provide support and proactively guide clients through the claims process.

Contact your Marsh representative to assist with lodging a claim.

Additional cover we can arrange

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Help protect your business against third-party accidents and costly legal fees. Let us arrange the right cover for your needs.

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Business pack insurance

Need a range of covers to suit your business needs? Explore Marsh’s business bundles for glass, theft, contents cover and more.

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LCPA 24/332

This is a general overview of the policy. Please call us and ask for a copy of the insurer’s policy wording. We recommend you read the policy wording, so you have an understanding of the policy terms, conditions and exclusions before you decide whether this policy suits your needs.

Marsh Advantage Insurance Pty Ltd (ABN 31 081 358 303, AFSL 238369) (“Marsh”) arranges the general insurance (i.e. not the Discretionary Trust Arrangement) and is not the insurer. This page contains general information and does not take into account your individual objectives, financial situation or needs. For full details of the terms, conditions and limitations of the covers, refer to the specific policy wordings and/or Product Disclosure Statements available from Marsh on request. Marsh makes no representation or warranty concerning the application of policy wordings or the financial condition or solvency of insurers or re-insurers. Marsh makes no assurances regarding the availability, cost, or terms of insurance coverage. Any statements concerning actuarial, tax, accounting, or legal matters are based solely on our experience as insurance brokers and risk consultants and are not to be relied upon as actuarial, accounting, tax, or legal advice, for which you should consult your own professional advisors. The Discretionary Trust Arrangement is issued by the Trustee, JLT Group Services Pty Ltd (ABN 26 004 485 214, AFSL 417964) (“JGS”). Any advice or dealing in relation to the Discretionary Trust Arrangement is provided by JLT Risk Solutions Pty Ltd (ABN 69 009 098 864, AFSL 226 827) (“JLT”). JGS and JLT are businesses of Marsh McLennan. The cover provided by the Discretionary Trust Arrangement is subject to the Trustee’s discretion and/or the relevant policy terms, conditions and exclusions.