Professional Indemnity Insurance
Professional indemnity insurance (PII), also called professional liability insurance (PLI), is a form of liability insurance that helps protect professional advice and service-providing individuals and companies from bearing the full cost of defending against a negligence claim made by a client, and damages awarded in such a civil lawsuit.
The coverage focuses on alleged failure to perform on the part of, financial loss caused by, an error or omission in the service or product sold by the policyholder. These are potential causes for legal action that would not be covered by a more general liability insurance policy which addresses more direct forms of harm. A professional indemnity policy sometimes also provides for the defence costs, including when legal action turns out to be groundless.
Melbourne Insurance Brokers Professional Indemnity Insurance
provides cover from potential threats, such as claims for alleged negligence or breach of duty arising from an act, error or omission in the performance of professional services.
Civil liabilities covered including (but not limited to):
- breach of duty (including duty of confidentiality)
- unintentional defamation
- loss of or damage to documents (to the full policy limit)
- dishonest/fraudulent/criminal or malicious acts and breach of fiduciary duty (innocent party cover)
- misleading and deceptive conduct under the ASIC Act 2001
- breaches of the Trade Practices Act / Fair Trading Acts (Australian and New Zealand
You may need professional indemnity insurance if you provide services involving the use of some special skill or ability - for example, if you provide your clients with advice on:
- design work
- financial planning
- management of their businesses or interests.
Some professions that may need this level of cover include:
- Graphic Designers
- IT Professionals
- Real Estate Agents
- Travel Agents
If you provide this type of service, you are required by law to meet a particular level or standard expected of your profession. You can be held liable if loss or damage occurs as a consequence of your not meeting that standard. Source: Business.Gov.Au
Please call us on 03 9686 0688 for a Professional Indemnity Insurance quote.