Professional Indemnity

Professional indemnity insurance protects you from legal action taken for losses incurred as a result of your advice or design.  This policy is designed for anyone who gives advice and/or services of a skilful level, according to an established discipline, to another person or business for a fee.

What protection will a Professional Indemnity policy provide?

Professional Indemnity policy provides comprehensive protection for your assets against claims for financial loss, injury or damage arising from an act, error or omission in the performance of the professional services. So you can carry on your business safely in the knowledge that you’re covered

Why does a professional need a Professional Indemnity policy?

A professional will hold themselves out as having a special skill, which can be relied upon by another. Consequently the law requires that the professional exercise the required skill to an appropriate level expected by that profession. Professionals are only human and mistakes do happen. Any financial loss, injury or damage arising from a mistake or failure by the professional to exercise the required level of skill may mean that an award is made in favour of a person who suffers a loss, damage or injury. A professional may also be held to be liable for a mistake even though there was no negligence.

3. What protection will a Professional Indemnity policy provide?

A Professional Indemnity policy aims to shield the professional’s assets in the event of a claim, therefore ensuring that he/she is able to carry on their business, coverage can include:

  • civil liability resulting from the conduct of professional services, such as liability under the Trade Practices Act, libel and slander, and infringement of intellectual property rights
  • costs in addition to or inclusive of the limit of indemnity, for example legal defence costs
  • lost documents cover – for loss and costs to replace or restore lost or damaged documents
  • inquiry costs – legal costs for attendance at inquiries
  • liability for employee dishonesty
  • compensation for court attendance
  • up to two hours of free legal consultation
  • cover for the hiring of public relations consultants to restore reputation
  • indemnity for individual contractors who work directly under the Insured
  • an extended 30-day period for reporting claims after the expiry of the policy period
  • indemnity for claims made in respect of a former subsidiary
  • automatic 30-day cover for new subsidiaries
  • liability protection for spouses, and
  • indemnity for work experience personnel.

Last updated May 28, 2020

McCormick Harris Insurance Brokers is the Registered Trading Name of McCormick Harris & Associates Pty Ltd who are registered General Insurance Brokers with the Australian Securities and Investment Commission. (ASIC), and are also members of the National Insurance Brokers Association (NIBA) and are a Steadfast Network Broker.