What is professional indemnity insurance?
Professional indemnity insurance provides insurance coverage for your legal liability in relation to advice and/or services given to your clients.
Why do I need professional indemnity insurance?
You could suffer a claim if your client (or other third party/s) allege that they have experienced a loss (usually financial) as a result of a breach of professional duty by you.
Means that claims first advised to you (or made against you) and reported to your insurer during the Period of Insurance are recoverable irrespective of when the incident causing the claim occurred, subject to the provisions of any clause relating to a “retroactive date”.
The retroactive date shown on the policy is the date after which any errors or omissions of the Insured are covered.
Any errors or omissions made before the retroactive date are excluded by the policy. The retroactive date may be the time that the Insured first purchased a Professional Indemnity or Directors' & Officers' Liability policy.
It is important to make sure that the retroactive date is correct. Remember, that the actual event that causes a claim to be made under the policy may have occurred in a prior period of insurance, but is only covered if it is notified to the insurers in the period of insurance when the Insured first becomes aware of the claim or circumstances.
The act, error or omission must arise from work done after the retroactive date shown in the schedule of the policy for the insurance to respond.
Claims Made policies generally exclude Claims arising from facts and circumstances known to the insured before the start of the policy period. An inadvertent and innocent failure to disclose a known fact or circumstance that gives rise to a Claim could result in an uninsured loss.
Continuous Cover clauses address this situation by extending cover under the policy to a Claim arising out of a fact or circumstance which could have been notified under a previous professional indemnity insurance policy but the insured failed to do so.
For a Continuous Cover clause to apply, usually the insured must have been insured under a professional indemnity insurance policy issued by the insurer at the time they first became aware of the fact or circumstance that gives rise to the Claim. The Claim must have been covered under the previous policy and the insured must have been continuously covered, without interruption, by a professional indemnity insurance policy with the insurer until the time when they notify the Claim to the insurer.
This cover will usually only be provided where there has not been any fraudulent nondisclosure or fraudulent misrepresentation by the insured.
- Medical Malpractice
- Real Estate Agents
- Legal - Lawyers
- IT - Computer & Software Consultants
- Advertising - Agents
- Associations - Trade, others
- Financial - Financial Lender's, Fund Managers, Advisors
- Consultants - Various Industries
- And many others
Price & security
Offering competitive premiums and quality service, our insurance policies are available Australia wide and provide you with the security of Australia's largest Insurers. We also offer a choice of flexible payment options.
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Please read our General Advice Information Page when considering purchasing an insurance product.
Please refer to the Insurer's Product Disclosure Statement (PDS) or policy wording when deciding if this product is right for you.