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FD Beck Insurance Brokers

Useful Guide: Who needs Professional Indemnity Insurance in Australia and Why?

You may believe that Professional Indemnity Insurance is only for certain of ‘high-risk’ professionals. In this quick guide we’ll cover why you need a professional indemnity insurance and who it is for.

How do you figure out who needs Professional Indemnity Insurance?

In our experience, many people mistakenly believe that PI insurance only applies to architects, accountants, engineers, lawyers or doctors. However, that’s simply not true. Furthermore, some people incorrectly believe that because they are only a small business they don’t require professional indemnity. In fact, if you are set up as a sole trader, contractor, consultant or freelance professional, you still need to consider professional indemnity insurance.  

So, how do you figure out who needs a Professional Indemnity insurance in Australia

3 important questions business owners in Victoria needs to ask!

Start by asking yourself these 3 questions:

If you answered yes to one or more of these questions, you need Professional Indemnity Insurance.

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Helpful list of professional consultants or businesses

The list of professional consultants or businesses that have a professional indemnity exposure is wide-ranging. Many are listed below:

Why do I need professional indemnity insurance?

You might ask, why do I need PI insurance and what does professional indemnity insurance cover? PI protects your business’ reputation well before a dispute reaches court by providing legal and reputational defence costs. Understanding the professional indemnity insurance cost can help you budget for this essential protection.

There are many advantages to having PI insurance, but here are the three key benefits

#1 Access some of Australia’s best legal firm

In the event of a Professional Indemnity claim would you know what legal firm to appoint? 

Further, did you know that a Professional Indemnity insurer gives you access to some of Australia’s top legal firms? In that way, you can rest easy, knowing that the appointment of a lawyer to defend you is all handled by the insurer. You see, Insurance companies have a panel of legal firms. 

 They are selected for their expertise in handling professional indemnity claims examples, which are crucial professional indemnity claims to know.

It’s important to regularly review your professional indemnity (PI) insurance to ensure that legal costs are covered in addition to the policy’s limit of indemnity. Specialist legal firms, which often handle PI insurance claims, have the expertise to resolve matters more efficiently than might otherwise be possible. This expediency can significantly reduce both the financial impact and the duration of legal disputes.

However, without PI insurance, the high costs of these specialized legal services might be unaffordable. This underscores the importance of having comprehensive professional indemnity insurance to not only manage potential legal challenges but also to safeguard your financial stability.

For over 100 years, FD Beck has protected Australians. Rest assured, we have the knowledge and expertise to handle every aspect of your insurance needs. Request A Free Quote Today!

#2 Restore your reputation

Some professional indemnity insurance policies extend to include cover for Public Relations Expenses. This is to restore your reputation. 

In particular, coverage for Public Relations Expenses is important. This is because it covers costs for a public relations firm. They are engaged to limit adverse effects or negative publicity from a claim. Better still, many Professional Indemnity insurers have a generous Public Relation Expenses limit of $50,000.

#3 Focus on running your business

A claim against you for alleged unprofessional advice, failure to exercise required skill, or breach of professional duty, can be costly. That said, it’s not just the financial cost you need to consider. It’s the time, stress and administration required for a lengthy court case. 

If you go through the court process without the support of an insurer and their lawyers, it will severely impact your business operations. PI insurance can help ensure that your business keeps operating, whilst the insurers and their lawyers manage the claim. More importantly, it can give you the freedom to get on with what you do best. Allowing you to focus on the day to day activities of running your business.

#4 The risks of not having PI insurance can be significant

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In short, if you provide any service that is relied upon by other people or businesses, you may need professional indemnity insurance to protect you. In fact, not having Professional Indemnity Insurance often represents a very serious business risk.

So, if you are confused about who needs Professional Indemnity Insurance and your occupation appears on the list above, get a free online professional indemnity quote. To do so, just visit our free online insurance quoting tool for a free, instant, no-obligation online quote.

When considering why you need PI insurance, think about the professional indemnity policy exclusions and the time, energy, and effort it takes to defend a claim, even if it is unfounded.

Go to FD Beck’s online quick quote to get your Professional indemnity insurance quote. Answer a few simple questions to generate your online quote. Almost 150 professional occupations are covered. Don’t just think your covered, know you are.

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What Does Professional Indemnity Insurance Cover?

Professional Indemnity insurance may protect your business against financial loss and damages that arise from an act, error, or omission in the services you provide.

What Exclusions do Professional Indemnity Policies have?

What Exclusions do Professional Indemnity Policies have?

What Exclusions do Professional Indemnity Policies have? Many people think that their professional indemnity policy will cover all of their liabilities.

How much does professional indemnity cost | FD Beck

How much does professional indemnity cost?

How much does professional indemnity insurance cost? Simply go to FD Beck’s online calculator. All you need to do is answer a handful of questions.

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Useful Guide: Who needs Professional Indemnity Insurance in Australia and Why?

You may believe that Professional Indemnity Insurance is only for 'high-risk' professionals. In our experience, many people mistakenly believe this...

Professional Indemnity Claims Examples | FD Beck

Examples of Professional Indemnity Claims

Check out our Youtube video about Professional Indemnity Claims examples. Learn more about PI Insurance here at FD Beck.

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Costly Mistakes: Professional Indemnity Claims You Need to Know About

Discover key professional indemnity claims across various sectors. Learn how PI insurance can protect your business from costly negligence errors and financial losses.

Ask Our Award-Winning Insurance Brokers!

With the right professional indemnity coverage, you can focus on your professional work and have peace of mind knowing that you’re protected from potential legal risks.