What is Professional indemnity insurance?
Professional indemnity insurance protects a business and its employees when they are sued for an act, error or omission in relation to the provision of professional services. Complicated legal issues relating to professional indemnity can result in the professional incurring significant legal costs in protecting their business and their professional reputation. A Professional Indemnity Insurance policy provides protection for the professional against those costs and the resultant impact on their business and their livelihood.
Types of claims
Professional indemnity claims arising out of the provision of professional services
Libel, slander or defamation against a third party
Loss of client documentation
Legal liability for damages and claimants' costs/expenses arising from an act, error or omission/civil liability of the "company's" employees
Wrongful or inadequate advice to a third party
Acting without proper instructions or failure to act in accordance with the third party's instructions
Failure to advise third party
Breaches of Trade Practices Act/Fair Trading Legislation - eg misleading or deceptive conduct
Breaches of statutes - eg Corporations Law, Uniform Consumer Credit Code.