This form of coverage essentially covers the advice which a professional would give for a fee. Many professions are done on just an advice basis, with no physical work taking place.
Many people confuse public liability cover and professional indemnity insurance. Liability will cover physical damage to property or persons as a result of your negligence. Indemnity, however, is purely for non-tangible advice which is followed causing a loss.
As an example, an investment broker would provide financial forecasts in the stock market to businesses and individuals. The broker would then advise the client where best to invest large numbers of shares, in order to increase their portfolio of wealth.
The stock market, being a volatile and difficult industry to predict, comes with the chance that any shares may increase or plummet as a result of an unforeseen national or global incident. Because there are so many factors at play, many times a broker can make a mistake, causing the loss of funds for his or her clients.
Professional indemnity insurance is looked at as a safety-net in place to cover the broker in the unfortunate event their advice causes a major loss for the client. As the client’s business success may hinge on the advice delivered, many people would not hesitate to begin legal proceedings against the broker to ensure their own business does not go under.
This same analogy can be applied to accounting, information and technology, engineering, real estate and property, structural inspections, mining, human resources, trainers or instructors, medical industry staff, etc. Many industries now require this type of insurance as a mandatory cover before trading due to past court settlements causing consultants and their consultancies to close down.
We offer professional indemnity to a very wide range of industries currently and are always looking to expand our brokerage with new business in unique industries not listed above.
If you require more information on professional indemnity insurance quotes and to find out what actual cover you need, please give one of our consultants a call on 1300 669 664 and we will be happy to help you out with all of your business insurance requirements.