What is Professional Indemnity Insurance?
Professional indemnity insurance provides financial protection for businesses and individuals who give advice, provide professional services, or manage client information. In Australia, this cover safeguards against claims of negligence, mistakes, or breaches of duty, including the legal costs of defending those claims. It is essential for consultants, contractors, and licensed professionals whose work carries professional responsibility.
What Does Professional Indemnity Insurance Cover?
Typical features of professional indemnity insurance Australia include:
Types of Professional Indemnity Insurance in Australia
Standard Professional Indemnity Cover
Protects professionals against claims of negligence, breach of duty, or mistakes. This is the most common form of cover and applies across industries such as consulting, IT, and healthcare.
Civil Liability Professional Indemnity
Broad cover that includes civil wrongs such as misrepresentation, defamation, or intellectual property infringement, in addition to negligence claims.
Industry-Specific Professional Indemnity
Tailored cover for professions with unique risks, such as medical practitioners, architects, engineers, or financial advisors. Policies are adapted to regulatory requirements and industry standards.
Combined Indemnity and Public Liability Cover
Some professionals choose to combine professional indemnity with public liability insurance to ensure full protection for both their advice and physical business activities.
Why Consider Professional Indemnity Insurance?
Even highly skilled professionals can face unexpected claims if a client suffers financial loss or reputational damage. Without insurance, legal costs and compensation payouts can be significant. Professional indemnity insurance Australia provides:
