What is it?
Professional Indemnity insurance (also known as Professional Liability Insurance, or PI Insurance) is specifically designed to provide financial protection for businesses that provide advice or services for a fee. It’s actually mandatory for many professions in Australia. But even where it isn’t, it can still be a very sound risk management option, as it protects you against legal costs and court awarded damages relating to actual or alleged negligence claims arising from professional services or advice you or your business provides to customers and clients.
What does it cover?
Unhappy or dissatisfied customers or staff making mistakes. Should a customer or third party allege or suffer a financial loss as a result of your advice, non-performance, a breach of contract or professional negligence when dealing with your business, Professional Indemnity Insurance protects you. Your PI insurer will provide the financial resources you need to legally defend, and potentially settle, such claims. Win or lose, it can be a hugely expensive and stressful process – and without PI cover the cost and impact to your business could be crippling.
Contact our team at answers@oceanins.com.au