Professional Indemnity Insurance

FAQs

What isn't covered in a Professional Indemnity policy?

Depending on the professional indemnity insurance policy, exclusions are outlined in the PDS, policy wording, and schedule. Common exclusions include:

• Contractual liability or commercial obligations.
• Liability resulting from fraud or dishonesty.
• Pollution or environmental damage.
• Third-party bodily injury or property damage (depending on your occupation).
• Unpaid fees or disputes over fees.

Exclusions, excess payments, and limits of liability can vary between insurers. Before deciding, it’s important to review these with your insurance broker to understand the scope of your professional indemnity insurance coverage fully.

How do I know which policy is right for me?

If you work in an occupation where Professional Indemnity is legally required, it can be tempting to find the cheapest cover available. However, not all policies are the same, and having the right cover in place will depend on the industry you work in and the type of advice and service you provide. Talking with an insurance broker can give you the expert advice needed to get the right cover suited to your needs.

Will I pay more to use an insurance broker?

Although there may be fees for their services, insurance brokers are trained professionals who assess your business risks and source the best business insurance for your situation. Their industry knowledge can save you money while ensuring you receive the most appropriate coverage for claims arising from your professional services.

Can professional indemnity insurance cover both legal liability and public liability?

No, professional indemnity insurance typically covers legal liability for errors in professional advice or services, whereas public liability insurance covers claims for bodily injury or property damage to third parties. Depending on your business activities, you may need both types of coverage.

Is professional indemnity insurance a legal requirement?

Professional indemnity insurance is legally required in certain professions, as the services provided can directly impact individuals’ financial situations and well-being. Even when not mandatory, it’s strongly advised for any business offering professional services or advice to protect against potential claims. Common professional services covered by indemnity insurance are the following:

• Accountants
• Legal practitioners
• Real estate agents
• Healthcare professionals