You would generally need professional indemnity cover if you provide service to clients that involve giving advice or sharing your expertise. Some examples of professions who should consider professional indemnity insurance include:

• Consultants – management consultants, IT consultants, financial advisers, accountants, designers, lawyers, brokers
• Construction professionals – builders, architects and engineers
• Healthcare and allied health professionals – doctors, dentists, naturopaths, acupuncturists, beauty and massage therapists.

You should consider professional indemnity (PI) cover because it provides financial protection for you and your business in the event that a claim is made against you for negligence, breach of duty, or an error or omission. It can also help build trust with clients, and may demonstrate  a level of commitment to the quality of your work.

For some professions, PI insurance is even a legal requirement, for example, solicitors, doctors and allied health professionals must have PI cover. If you are not sure whether it’s a requirement for your field  of work or business, it’s a good idea to check with your local governing industry body.

It depends on a few factors – for example, you would need to assess the risks associated with your industry and the services you provide, as well as the possible impacts you might have on your clients. Some professions may also be required by law to have a minimum level of cover for their industry, but these can vary depending on which state or territory you live in.

To match you with the best level of professional indemnity cover for your business needs, it would be wise to first seek advice from a broker who understands your industry or business requirements.

The cost of your professional indemnity insurance will depend on several factors, including your business size, revenue, and services provided.

When requesting a quote, be sure to fill in the form values as accurately as possible, so we can arrange the right premium and cover for your business.

Or you can request a call back to speak to a Marsh advisor for a clearer picture.

Professional indemnity insurance can cover your business for up to $10 million.

Generally, professional indemnity insurance doesn’t cover existing circumstances, intentional damage, contractual obligations and bankruptcy.

Yes. The terms are interchangeable, and they refer to the same insurance.

‘Claims made’ is an insurance policy that covers claims made against you during the current insurance period – regardless of when the claim event happened.

Professional indemnity policies provide a ‘claims made’ cover, because errors in these professions are often discovered weeks, months or even years after the mistake was made.

This means you must have a current professional indemnity policy or a ‘run-off’ policy in place at the time of the claim, as you won’t be protected by old policies.

Another important note: If the indemnity limit has been changed, it’s the limit in effect when the claim is lodged (ie 2020) that applies – not the limit purchased when the work was done (ie 2017).

Professional indemnity insurance can cover you for claims made due to incorrect or misleading advice.

Public liability, on the other hand, can cover you against claims resulting from property damage, accidents or injuries that happen due to your business activities

If a claim (and or a circumstance which may give rise to a claim) is made against you, you must notify your broker as soon as reasonably practicable.  The first step is typically the release of a claim form for completion.  It will also be necessary to provide a copy of any third-party correspondence and or demands received.  Other pertinent information, dependant on matter/allegations being made may also be required.   For example, a copy of the Service Agreement / Contract held 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.

Here are two examples of claims that professional indemnity cover could help with:

1. A Graphic Designer, develops a logo for a Client which is similar and in use by another entity.   Action taken against the designer for copyright infringement.
2. A consultant accidentally forwards confidential information to a client’s competitor. The client takes legal action against the consultant for breach of confidentiality.

To learn more about claims that could pertain to your business or industry, talk to one of our business brokers.

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.