Business Insurance

Professional Indemnity Insurance

Professional Indemnity Insurance

Make sure a small error doesn’t cost your business big money

Anyone can make a mistake – but if your business is found liable for negligence, the costs can be financially devastating. Not only can it lead to an expensive lawsuit, but your business’ hard-earned reputation may be damaged as a result.

That’s why professional indemnity insurance matters – help protecting your assets and brand if your advice or services cause a client to take legal action against you.

What do you need to know?

  • Who should consider it?

    Professional indemnity insurance is mandatory in some industries, such as medicine, accounting, law and financial advisers.

    But even in cases where it’s not required by law, it’s recommended for anyone who is providing professional services or advice in exchange for a fee – like engineers, graphic designers, IT consultants and more. And regardless of your legal obligation, it’s often a customer requirement that you have this cover in place.

    Did you know?

    When you’re outsourcing work to a contractor, you may still be legally liable for any errors they make – so it’s worth to help make sure you're protected.

  • What can it cover?

    As a wide-ranging insurance solution, professional indemnity cover may include anything from accidents to errors and omissions.

    To protect against professional risk, you may want to consider a combination of:

    • Professional indemnity insurance to protect against legal action from a client
    • Medical malpractice insurance for cover against patient claims due to errors or breach of duty

  • What isn't covered

    There are exclusions. There is also often a deductible or excess and limits on cover, so check with your Steadfast insurance broker.

Find a Steadfast Broker

Get the right advice at the right price and have a local Steadfast broker on your team.

Case Study

Protection against liability arising from errors

One mistake can be all it takes

Michael is an engineer who designs the supporting foundations of a residential property. He makes an error with the site calculations – which leads to the slab cracking and a loss of property to the owner. His company is liable for this loss, which could be anywhere between $150,000 up to the full value of the house.

But because Michael has professional indemnity insurance, he’s covered for this amount – as well as any legal expenses if the matter goes to court.