Professional Indemnity
As professional indemnity claims may arise from any situation where a client loses money as a result of a professional mistake, professional indemnity insurance is also recommended to a whole number of other industries. Architects, engineers, graphic designers or anyone that takes a fee for service and delivers a product that a client relies upon is a candidate for professional indemnity insurance.
Professional indemnity insurance basically insures you against your skill. Some clients may have made a financial loss from your services to them. Professional indemnity insurance covers you for any legal costs that may arise from the client filing a lawsuit against you. You are also covered for any potential compensation in the event of losing the lawsuit.
Who needs professional Indemnity insurance?
You need it if you provide a professional service involving specialised knowledge or expertise. This includes:
- Advice
- Design
- Consultancy
- Opinion or
- Analysis services
How can claims arise?
As a result of growing consumer awareness, clients who rely on your professional services may pursue a claim if they hold you responsible for their loss. Claims can arise against you in a number of ways:
- At common law in negligence if you fail to exercise the standard of reasonable care for your profession,
- For defamation,
- Under the misleading or deceptive conduct provisions of the Trade Practices Act,
- For breach of a contract to perform professional services.