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.

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:

Accounts Preparation
Adoption Agencies
Advertising Agencies & Services
Aged Care Consultants
Agricultural Consultant
Agronomists
Aquaculture Consultants
Arbitrators
Archaeologists
Archival Firms
Artists/Art Directors
Authors
BAS Services
Biologist
Book Binders
Bookkeeper
Botanist
Building Designers
Business Coaches
Business Planning
Business Project Management
Business Training Courses
Buyers Agents/Advocates
Career Advisory Services
Cartography Consultants
Catering Consultants
Change Management
Civil Celebrants
Company Search Agencies
Compliance Consultants
Conference Management
Cooking Instructors
Copy Writers
Court Reporters
Draftsperson & The Drawing
Ecology Advisors
Editors
Education Advisory Services
Education Consultants
Electrician
Employment Agents
Energy Consultant
Energy Raters
Engineer – Air Conditioning
Engineer – Electrical
Engineer – Heating
Engineer – Hydraulic
Engineer – Mechanical
Engineer – Safety
Engineer – Telecommunications
Environmental Consultants
Entomology Consultants
Fauna Consultants
Food Inspectors
Forestry Consultants
Funeral Directors
Gemologists
Geographers
Graphic Designers
Green Auditors
Health & Safety Consultants, Workplace Assessors
Historians
Home Sustainability Assessors
Horticultural Advisors
Hospital Consultants
Hotel Consultants
Human Resource Consulting
Hygiene Consultant
Illustrators
Image Consultants
Import and Export Agents
Industrial Relations Consultants
Insurance Loss Adjusters
Interior Designers
Interpreters
Irrigation Design and Consultants
Landscape Designers
Lapidary (Gemstones) Consultants
Librarians
Literary Agents
Logistic Advisors
Management Consultants
Marketing Consultants
Market Research Analysts
Marriage and Family Counsellors
Mediators
Metallurgy Consultants
Meteorology Advisors
Methamphetamine Testing
Microbiologists
Migration Agents
Multimedia Consultants
Museum Curators
Numismatic (Coins) Advisors
Occupational Health & Safety Consultants
Organisational Structure and Staffing
Philatelic (Stamps) Advisors
Photographer
Pool Safety Consultants
Private Investigators
Process Servers
Property Title Searchers
Publicists
Public Record Search Firms
Public Relation Advisors & Firms
Quality Control Advisors
Recruitment Consultant
Registered Training Organisations
Relocation Agents
Risk Management Consultants
Robotics Advisors
Secretarial Services
Sewage Consultants
Shipping and Freight Forwarding
Sociologists
Solar Energy Consultants
Statisticians
Strategic Planning
Sustainable Assessors and Auditors
Tax Agent
Technical Writers
Textile Designers
Tourist Bureau and Guides
Town and Country Planning
Training
Traffic Management
Translators
Travel Agents
Viticulture Consultants
Water Brokers
Water Conservation Advisors
Wedding Planners
Wind Energy Consultants
Wool Brokers and Classification
Workflow Efficiencies
Workplace Assessors
Zoologists

Why do I need professional indemnity insurance?

Well, Professional indemnity insurance protects your business’ reputation. In fact, it does this, well before a dispute reaches court.

In this way, it is providing legal and reputational defence costs. In fact, there are many advantages in having PI insurance. However, in our experience, the three key benefits are listed below.

#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. In fact, we regularly see claims where the legal costs are just as much as the amount of compensation being claimed.

That’s why it is important to check your PI insurance. It’s so you can make sure the legal costs are in addition to the limit of indemnity. Often, because these legal firms specialise in PI insurance claims, they may be able to resolve the matter quicker that what otherwise could be achieved.

However, without insurance you may not be able to afford these specialist firms. That’s why it is important to have professional indemnity insurance.

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

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.

In summary, when considering why you need pi insurance, don’t just think about what someone may claim if you allegedly made a mistake. Think about 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.