24th March, 2014

Do I need professional indemnity insurance?

Professional indemnity insurance is an important part of protecting your business from claims and legal costs that could arise from your day-to-day activities.

This type of cover is designed to guard against a range of circumstances that could result in a third party seeking damages against your business. This may be due to an act, omission or breach of professional conduct that adversely affected them in any way.

So, for example, if a client commissions you to do a piece of work or provide professional advice that unfortunately leads to them losing money or reputation, you could find yourself facing a claim.

In some sectors – such as law or finance – professional indemnity insurance may be mandatory under the respective regulators of that industry. However, even businesses that are not required to purchase this cover should consider doing so, as protecting yourself against a claim without insurance could be costly and time-consuming.

Whether you are a sole trader or a large organisation, professional indemnity insurance helps you to conduct business safe in the knowledge that if a mistake or other issue occurs you will be adequately protected.

When considering a professional indemnity insurance policy, it is essential that you obtain cover not just for the business, but for any principal, director, partner, employee or related entity that is associated with your organisation.

Finding a comprehensive solution for your business will depend on your particular field. A policy can be structured to offer cover defence costs, investigation costs, settlements and judgements. This means you can continue concentrating on your business without worrying about how a particular claim could impact your revenue, growth and reputation.

To find the best professional indemnity insurance options in Western Australia for your business, contact a dedicated insurance broker in Perth such as Bruce Insurance for more information.

Author: Murray Bruce