Different types of businesses engage in behaviours that have differing sets of risks. Many of these will have a type of insurance that can help alleviate the costs of damage and legal fees.
When the mistake is of a professional nature, such as giving bad advice, and it results in a financial loss for a third party, they may seek damages through the courts. If you or your business is found responsible for this loss, you may need to pay even if the error was not negligent or intentional.
Because mistakes can happen at any time and to anyone, there exists forms of professional indemnity insurance that can cover someone if something of this nature should happen.
Many professions need to have indemnity insurance as part of their respective industry body’s regulatory requirements. In some sectors – such as law or finance – having professional indemnity insurance may be mandatory.
With the rate of professional indemnity claims (insurance) being on the rise in many different industries, perhaps now is the time to consider if it is right for your business.
People working in (particular) various industries are more likely to need professional indemnity insurance than others. Consultants who provide advice on management and business, marketing, training or education should consider covering themselves with professional indemnity in case their advice leads to legal action against them.
Fitness professionals including personal trainers, dance teachers and yoga instructors, working in jobs that can result in people injuring themselves, might also like to have the peace of mind that insurance brings.
IT professionals, recruitment agents and interior or graphic designers should also have insurance in case they need to defend their business against allegations of professional negligence, for example giving clients incorrect or wrong advice.
In fact, anyone who holds themselves out to be a professional in their respective field has a risk that could be insured. This includes tradies such as plumbers, electricians, painters, carpenters, builders etc.
If you are unsuccessful in the case, the cost of damages awarded can be covered by professional indemnity insurance.
If you need to speak with a specialist, MGA Insurance Brokers has offices throughout Australia, with experts ready to guide you in the right direction.