Understand your Policy
Making sure that your insurance policy covers you adequately, particularly in the event that a claim is made against your professional services, is extremely important. This involves reading the terms and conditions, so you understand the extent of your policy coverage, and its limitations/exclusions.
Bodily Injury and/or Property Damage Exclusions
A major exclusion to look out for in Professional Indemnity Insurance policies is Bodily Injury and/or Property Damage Exclusions.
For the professions that don’t have much risk in this area, there is no reason for an exclusion to be under the policy. However, you must keep in mind that issues do arise that could be out of the ordinary.
If no cover is provided under your current policy, then there is no protection if a third party is injured or alleged to be injured during, or as a result of, the professional services you have provided for a fee.
For example, if as part of a claim, a third party alleges that they have suffered emotional distress (mental injury) and seeks compensation, there is no cover.
Doesn’t Public Liability Insurance Provide Cover?
Public Liability Insurance does not provide cover for bodily injury and/or property damage arising from the rendering of professional services. If you have Public Liability Insurance and believe that this will provide cover in the event that a third party is injured, you are wrong.
Any third party can make a claim against you if they have directly relied upon your advice and they have allegedly suffered a loss due to negligence of your professional services.
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.”