If your in the business of providing advice, whether it be direct or indirect to your clients, then there is something you need to do before you take on another client and that is consider purchasing professional indemnity insurance.
 
You may have thought you don’t need insurance protection. Perhaps you work out of a small office where you don’t have physical contact with your clients. That doesn’t matter. You can be working out of your home office and you’re still going to need professional indemnity insurance. Why? Because if you provide a professional service and advice that others rely on to make their decision based on your expertise, then there is always a risk of error or omission if the person that relied on suffers a financial loss.

Anytime you provide a service, you are opening yourself up to a risk. This means that something can go wrong. You can make a mistake that causes some kind of monetary damage to the client and in tern they may choose to sue you for what they lost. If you don’t have insurance, then you’re going to be in financial trouble because you’ll have to pay for the damages straight out of your pocket.

Below are 3 facts about professional indemnity insurance that you should know before taking another client:

  1. It is important that self-employed and business that provide advice and charge a fee for their services have a professional indemnity insurance policy so that you can be protected in case something occurs. Even if you have an excellent track record of keeping your clients satisfied, you just don’t know when the unexpected might happen.
     
  2. In Business, no ever sets out to intentionally have a claim. An attitude of, “I don’t need it because I never make mistake or no one will ever make a claim against us as bad things never happen to us in business” is not the type of thinking you should possess. You should possess thinking more along the lines of, “Nothing bad ever happens in my business, but this is good protection to have just in case the unthinkable occurs.”
     
  3. Whether your business is new or well established, it is wise to make sure that you are protected. You do not want to cause a loss for a client and then have to pay for that out of your pocket. Legal costs associated to defending matters are expensive, generally in the tens of thousands let a lone if you’re found to be liable to pay compensation or damages.

So make sure you get insured now so that you can go on with your business knowing that in the case a disaster strikes within your business, you’ll have the insurance in place to provide protection in the event of the claim.

Further information on professional indemnity insurance is available at www.optimuminsurance.com.au

  • It is affordable – With in Australia there is a broad insurance market for professional indemnity insurance with a large number of insurance offering cover at very competitive prices. The fewer the perceived risks, the cheaper your insurance is going to be.
  • Policy coverage – The coverage you will receive will be specifically based on your business activities. If you’re a web designer, you do not have to worry about receiving the same coverage as an accountant. The businesses are different, so the coverage is too.
  • It is professional – Having professional indemnity insurance provides you protection in the event your client suffers a financial loss as a result of your negligence. Many businesses when dealing with consultants or professional advisers, will request confirmation of their Professional Indemnity Insurance prior to entering into a contract of service. It is part of best business practice.
 

Disclaimer“This material contains general information only and may not suit your particular circumstances. To decide if a policy is right for you please carefully read the relevant Product Disclosure Statement (PDS) and/or Policy wording. While we have exercised due care and skill in preparing this information, Optimum Insurance Services (Optimum) does not accept any legal responsibility or liability for negligence or otherwise to you or anyone else who seeks to rely on this information. This includes, without limitation, loss arising from a possible failure of the information to comply with statutory or regulatory requirements or the failure of the information to identify other terms and conditions beyond those considered in this document. You should obtain advice to ensure that your policy provides adequate cover for your circumstances.

Optimum Insurance Services Pty Ltd is a Corporate Authorised Representative of Insurance Advisernet Australia Pty Ltd (Car No. 291220), Australian Financial Services Licence No 240549, ABN 15 003 886 687.”

Download Our Free Insurance Guides

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Business Owners Guide to Professional Indemnity Insurance

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3 reasons to take out pi insurance

 

Optimum Insurance Services Pty Ltd is a Corporate Authorised Representative (No. 291220) of Insurance Advisernet Australia Pty Ltd (AFSL No. 240549).

 

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