If you own a business, you can be liable if your actions cause a financial loss to a third party... consider professional indemnity insurance for your business if the likelihood of legal action is high
Anyone can make a mistake - but if your business is found liable for negligence, the costs can be financially devastating. Not only can it lead to an expensive lawsuit, but your business’ hard-earned reputation may be damaged as a result.
That’s why professional indemnity insurance matters - helping to protect your assets and brand if your advice or breach of your professional duties result in a client taking action against you.
Professional indemnity insurance is mandatory in some industries, such as medicine, accounting, law and financial advisors - with the requirements differing from state to state.
But even in cases where it’s not required by law, it’s recommended for anyone who is providing professional services or advice in exchange for a fee - like, graphic designers, IT consultants and more. And regardless of your legal obligation, it’s often a customer requirement that you have this cover in place.
In 2019, Professional Indemnity Claim payments increased by 9% from 2018 to 2019 (National Claims Policy Database, APRA Regulated General Insurers in Australia)
In 2019, the average Professional Indemnity Claim payment made was in excess of $60,000 (National Claims Policy Database, APRA Regulated General Insurers in Australia)