PROFESSIONAL INDEMNITY

Traditionally, there are two types of professionals that require Professional Indemnity Insurance:

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1.  Those that design for a fee

2. Those that provide specialty advice for a fee

These days, the scope of a professional has expanded significantly and anyone who is providing some sort of advice may need to have professional indemnity insurance.

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Of course, as professionals are only human, mistakes happen. A financial loss, injury or damage arising from a mistake or failure by you to exercise the required level of skill may mean a claim for compensation is made against you. Even if you were not negligent, there may be thousands of dollars worth of legal fees just to defend the claim. All of these are the types of costs which a good professional indemnity policy should pick up.

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Unlike property insurance which requires you to have an active policy in place when the damage happens, a professional indemnity policy only responds when a claim is notified (even if you gave the advice some 5 years prior). Therefore it’s important to have adequate and continuous cover - even after you’ve retired!