3 FACTS ABOUT PROFESSIONAL INDEMNITY INSURANCE THAT YOU SHOULD KNOW

BEFORE TAKING ON A CLIENT

Do you provide a service for a fee and advice that other rely on to make a decision to purchase a product or service?

If your in the business of providing advice, whether it be direct or indirect to your clients, then there is something you need to do before you take on another client and that is consider purchasing professional indemnity insurance.

You may have thought you don’t need insurance protection. Perhaps you work out of a small office where you don’t have physical contact with your clients. That doesn’t matter. You can be working out of your home office and you’re still going to need professional indemnity insurance. Why? Because if you provide a professional service and advice that others rely on to make their decision based on your expertise, then there is always a risk of error or omission if the person that relied on suffers a financial loss.

Professional Indemnity Insurance

It is important if you provide advice and charge a fee for your services that you strongly consider the need for a professional indemnity insurance policy so that you can be protected in case something occurs. Even if you have an excellent track record of keeping your clients satisfied, you just don’t know when the unexpected might happen.

In business, no one ever sets out to intentionally have a claim. An attitude of, “I don’t need it because I never make mistake or no one will ever make a claim against us as bad things never happen to us in business” is not the type of thinking you should possess. You should possess thinking more along the lines of, “Nothing bad ever happens in my business, but this is good protection to have just in case the unthinkable occurs.”

Advice for a Fee

• Peace of mind.

• Saving your valuable time in the incidence of any allegation.

• Reducing the possibility of an interruption to your business.

• Reducing the probability of lost income arising from an interruption to your business by providing time that would be required to defend an allegation without Professional Indemnity insurance.

Benefits of PI Insurance

Whether your business is new or well established, it is wise to make sure that you are protected. You do not want to cause a loss for a client and then have to pay for that out of your pocket. Legal costs associated to defending matters are expensive, generally in the tens of thousands let a lone if you’re found to be liable to pay compensation or damages.

So make sure you get insured now so that you can go on with your business knowing that in the case a disaster strikes within your business, you’ll have the insurance in place to provide protection in the event of the claim.

Getting Protection

3 Facts About PI Insurance

• It is affordable – With in Australia there is a broad insurance market for Professional Indemnity Insurance with a large number of insurance offering cover at very competitive prices. The fewer the perceived risks, the cheaper your insurance is going to be.

• Policy coverage – Tailored coverage specifically based on your business activities. If you’re a web designer, you do not have to worry about receiving the same coverage as an accountant. The businesses are different, so the coverage is too.

• It is professional – Having Professional Indemnity Insurance provides you protection in the event your client suffers a financial loss as a result of your negligence. Many businesses when dealing with consultants or professional advisers, will request confirmation of their Professional Indemnity Insurance prior to entering into a contract of service. It is part of best business practice.

To obtain a quotation, enquire online at www.optimuminsurance.com.au.

In most circumstances we are able to provide an quote over the phone. If you would like to discuss your needs further, contact us on 1300 739 861.

Policy coverage is always subject to the terms, conditions and exclusions of the insurance contract and policy wording provided by the insurer.

Each insurance company has its own policy wording. This means that coverage can vary considerably from one insurer to another. It is vital that you compare each policy based on the appropriateness of cover for your individual or business needs.

As Insurance Advisers, it is our role to understand the terms and conditions, so contact us now for advice and a quote.

Professional Indemnity Insurance Quote

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Presentation Disclaimer –– “This material contains general information only and may not suit your

particular circumstances. To decide if a policy is right for you please carefully read the relevant Product

Disclosure Statement (PDS) and/or Policy wording. A copy of the PDS or policy wording is available by

contacting our office on 1300 739 861;”

Disclosure Statement – “Optimum Insurance Services Pty Ltd is a Corporate Authorised

Representative of Insurance Advisernet Australia Pty Ltd (Car No. 291220), Australian Financial Services

Licence No 240549, ABN 15 003 886 687.”