Are you in a profession where you offer services or advice to others? Then you might want to consider taking out professionalindemnity insurance.
So, why do you need professional indemnity insurance?
Basically, if and when a third party makes a claim against you in relation to specialist services you have performed, or advice you have offered, this type of insurance will cover you.
This could happen if they feel you have made a mistake or breached your professional duty in some way when dealing with them.
It can apply to people operating in a wide variety of sectors. Depending on your field of expertise, it might even be compulsory.
According to Business Victoria, anyone providing services to another person in a professional capacity can be regarded as an “expert,” and could therefore be vulnerable to a claim of negligence or accused of making a mistake, omission or error.
Your professional indemnity insurance will help you to cover the legal expenses associated with such a claim, as well as provide compensation to the affected third party should you be found responsible for any damages they’ve experienced.
These damages can be “material, financial or physical,” reveals Business Victoria.
If you do not possess this type of cover and a claim is made against you, the financial consequences for you and your business could be catastrophic.
Remember, “to err is human” – no matter what industry you are working in, there is always the possibility that you’ll make a mistake.
However, with the right small business insurance you can prevent a single mistake from costing you everything.
This area of insurance can be quite tricky to understand, so we encourage you to consult with MGA Insurance Brokers if you’re considering this type of cover.