Professional Indemnity Insurance is becoming more widely used amongst a number of professions and as a lawyer you must ensure you have this cover in place. As a lawyer, you provide advice and services to clients which is why you need to be protected by Professional Indemnity Insurance
Today, we’ll be taking a closer look at Professional Indemnity Insurance and how it applies to your work as a lawyer.
What is Professional Indemnity Insurance?
Professional Indemnity Insurance is applicable to a wide number of professionals. It covers the legal costs of defending a claim which may arise out of an act, omissions of breach of professional duty during the course of your work.
Lawyers provide advice as part of their day to day work and often deal with projects or transactions worth a lot of money which is why liability cover is so essential. Indemnity cover also protects clients as they can be assured that they’ll be compensated appropriately following a successful claim. Lawyers in Australia are required by law to have Professional Indemnity Insurance in place.
What risks do lawyers face?
There are a number of risks that lawyers face which leave them open to indemnity claims. These include:
- Providing incorrect advice
- Fraud and dishonesty
- Conflict of interest
- Liabilities arising from the sale and purchase of businesses
- Inadequate or incomplete documentation
- Loss of documentation
- Poor communication with clients
- Liabilities arising from property-related transactions
- Liabilities arising from mortgage and commercial borrowing activities
- Intellectual property infringement
- Liabilities arising out of taxation advice
Choosing Professional Indemnity Insurance
When it comes choosing Professional Indemnity Insurance, there are a number of things you need to consider. Have a look at the amount of cover that’s being provided and ensure it will cover the highest potential financial loss. Compare the amount of excess you would be required to pay in the event of a claim and make sure the amount is manageable for you financially. Become familiar with the exclusions attached the policy so there are no surprises at claim time and speak with your insurance broker to make sure it covers all areas of risk.
At Contractor Cover, we specialise in providing high quality insurance to contractors including Professional Indemnity Insurance. We’ve made things easy by bundling all the main forms of insurance cover for contractors into one convenient package. Other forms of cover we provide for contractors include:
- General Property
- Personal Accident and Illness
- Public Liability
- Tax Audit
- Life Insurance
To discuss Professional Indemnity Insurance, contact Contractor Cover today on 1300 438 268 or fill in our online enquiry form.