Professional Indemnity Insurance
Professional indemnity insurance policies are designed for and available to professionals across a range of industries and covers:
- Damages awarded against you; and
- Legal costs and expenses of defending a legal claim
arising from a breach of professional duty. Professional Indemnity insurance is a “claims made” type insurance.
This insurance has developed and improved over the years. The most commonly used operative or insuring clause in a Professional Indemnity policy is a civil liability wording. In earlier years, Professional Indemnity coverage was limited to negligent acts, errors or omissions which was limiting.
A professional indemnity policy will provide cover for a “breach of professional duty”, specifically:
- Breach of duty;
- Unintentional breaches of the Trade Practices Act;
- Unintentional libel, slander and defamation;
- Unintentional infringement of copyright, trademarks, designs, patents or plagiarism;
- Loss, damage or destruction of any documents or records in the insured’s control and reasonable costs to replace and restore such documents; and/or
- Any actual or alleged dishonest, fraudulent, malicious or criminal act or omission by an employee.
Extensions included in most Professional Indemnity policies based on correct disclosure are:
- Loss arising from consultants, agents and subcontractors (contractors themselves are not covered);
- Incoming principals and their civil liability arising from prior professional practice;
- Prior corporate entities;
- Estate, heirs, legal representatives of the insured who dies or becomes legally incompetent or insolvent;
- Outgoing partners (“run off” cover - this may be available only as an extension)
Business Insurance Specialists has experience in providing Professional Indemnity insurance for many different types of business occupations. We appreciate the difference in coverage between policies and have access to all the major insurers.
For a competitive Professional Indemnity insurance quotation, please contact us today.