What is Professional Indemnity Insurance?
Professional Indemnity insurance (also known as PI insurance) is designed for professionals who provide advice or services to their customers and may even be a legal requirement for some professions. It can cover claims made against your business by customers or other third parties alleging that in performing your professional services, your business has caused them loss.
PI insurance can also help by providing cover for legal costs, settlements and court orders or judgments associated with claims against your business, provided they are covered by the policy.
Why do I need Professional Indemnity Insurance?
You probably wear many hats when running your office or practice. With the variety of tasks you have to tackle, you may feel like you are the marketing team, human resources team and maybe even the finance team for your business! With your job being so big, there may be instances where you make an error or omission in the service or advice you provide to a client after all you are only human.
If you receive a claim from a client alleging they have suffered financial loss (or other loss) due to your professional advice or services, the burden of legal costs and compensation can be a significant strain on your business. PI insurance can help to cover the costs associated with such claims. This can include compensation that is payable, and, depending on your policy, it can also include legal costs. Without insurance, you would need to pay the costs for any claims made against you out of your own pocket.
We offer tailored products for a wide variety of Industries and professions.
Professional Indemnity Insurance. Easy.
Easy to Understand
- Easy to digest information about insurances your business needs
- Experienced, friendly brokers on 1300 836 028
Easy to Buy
- Quick quotes online
- Purchase in just a few clicks
- Pay monthly options available
Easy to Manage
- Manage your renewals easily
- Adjust your policy anytime
- Request certificates of insurance quickly and easily
- Assistance in complex claims
Why choose Aon for Professional Indemnity Insurance?
Aon is committed to making life easier for small and medium business owners with insurance that’s easy to understand, buy and manage. If you’re a small business owner, your job is anything but small, so when it comes to protecting your business with the right cover, it helps to have an expert on your side.
You can compare covers and take out a policy online in just a few clicks. But if you need help, our team of friendly experienced brokers are a phone call away, so you can have confidence you’re making a better decision for you and your business.
Coverage under these policies can be similar, but they’re designed for different professions. Medical Malpractice Insurance is designed specifically for healthcare professionals, hospitals and surgeries.
Is Professional Indemnity insurance the same as “Errors and Omissions”?
Yes. Professional Indemnity Insurance is also known as Errors & Omissions in some parts of the world, including the United States.
What are the limits on Professional Indemnity insurance?
Limits in amount of cover will depend on the level of insurance you’ve taken out and your business’ needs or circumstances. You can consult with your broker who can help you determine how much cover you may need for your business.
What does professional indemnity insurance not cover?
Every policy has exclusions, and you should read your policy wording and speak to your broker to fully understand the exclusions specific to your policy. Some of the types of claims which generally aren’t covered include claims which arise from your intentional damage, fraud & dishonesty, and where you have assumed the liability under a contract.
How much Professional Indemnity insurance do I need?
This will depend on a number of factors such as your profession, your business needs and the clients you work with. Some professions are required by law to hold a minimum level of cover, and some clients may require you to have a minimum level of cover to work for them. Most PI Insurance policies start at a minimum cover of $1 million, but you should decide the appropriate limit for you and consult with your broker about this if you need to.
What is retroactive cover?
Retroactive cover is protection for claims which are based on services or advice you provided before the start date of your current PI insurance policy. When taking out PI cover, you may be asked to nominate a retroactive cover date or the insurer may impose one.
What is run-off insurance?
Run-off insurance provides coverage for claims made against you after your business ceases operating, or after you retire, based on advice or services you provided whilst in business. Depending on the policy, you may be required to pay additional premium to activate run-off cover.
Are Professional Indemnity insurance policies issued on a claims-made or occurrence basis?
PI Insurance is written on a claims-made basis. This means it will only cover claims made while the policy is in force. The claims-made basis of PI insurance means it is very important that any circumstances which may give rise to a claim, or any claim itself, be notified to the insurer as soon as possible after they occur. For example, if a client complains to you about your advice, your insurer should be notified at that time, rather than wait until a formal claim is made. If that client does decide to take legal action against you at a later date, you may not be entitled to cover if the insurer wasn’t notified previously.
As a professional, what other types of Insurance might I need?
Depending on your profession, and the nature of the work you carry out, there are several different policies you may need to consider. For example, if you have an office and have clients visit you, you can take out Business Insurance to help cover the cost to repair your premises if your office is damaged by fire, storm or other event, as well as Public and Products Liability to help cover you if someone is injured on your property or by your products. Cyber Insurance also offers important protection, which can help protect your business against cyber threats and other internet-based risks.