Professional Indemnity Insurance is essential for white collar professionals such as accountants, financial planners, solicitors, consultants and architects; businesses who provide professional services and/or advice.
PI insurance protects you in the event that another party alleges the advice or service you provided caused them a financial loss. For the occupations outlined above, this cover is compulsory to enable them to operate in their profession however, there are many other occupations where PI cover is not mandatory, but should be regarded as essential.
Aside from potentially protecting you from any payout to a third party alleging financial loss, this insurance will cover the substantial legal costs that tend to accrue in these disputes. In fact, the majority of claims in this area may not result in a payout, but without this cover, how will you meet the seemingly exorbitant legal costs that can mount up in any protracted dispute?
IT Professionals obtain this cover via IT Liability Insurance, which is a combination of both Professional Indemnity & Liability cover, as it became apparent to the industry that there was confusion regarding what type of policy would respond to allegations of loss, is it a PI or a Liability issue? By combining both covers under one type of policy, the possibility of two separate insurers trying to reject a claim was removed.
Medical professionals obtain PI cover under Medical Malpractice insurance, which extends to include allegations of physical injury or illness (or worse) due to the advice and/or actions of the medical professional.
Up until recently medical malpractice cover tended to a closed market with a handful of medical insurers controlling this insurance cover however a new option is now available via MIB providing more comprehensive cover at more competitive rates. Contact MIB now.
All forms of PI insurance are organised on a “Claims Made” basis rather than Claims Occurrence basis, which can be difficult for lay people to comprehend and emphasis the need to utilise MIB to assist you in organising this type of insurance for you.