What is the Most Essential Insurance for Lawyers? - Contractors Insurance Australia

November 4, 2015

As a lawyer it’s likely your days are spent dedicated to your clients, their cases, and dealing with your daily work and court proceedings. However it’s also just as important to stop and consider your insurance needs before it’s too late. One of the most important policies to include in your lawyers insurance package is Professional Indemnity Insurance. Here is why you wouldn’t want to be caught without it.

Advice is your service

You’re in the business of providing advice, advice which your clients are relying on to help them with their legal matters. It may seem obvious but as a result of this service provision, you have a duty of care to your clients that the advice is sound. If one of your clients suffers a loss due to your advice, you could be held liable for this loss and associated costs. A situation you are no doubt familiar with in your line of business.

The repercussions can be expensive

If you are found liable for a loss due to your advice and need to pay compensation or associated costs, you’ll find these can add up to very large sums. And if you are a private contracting lawyer working for yourself, as with any small business, it can sometimes be difficult to find the cash fast to pay for your costs. Especially when they are large amounts. Professional Indemnity for lawyers will ensure that your back pocket and your savings are protected by stepping in to help pay the damages.

Professional Indemnity Insurance is mandatory

Each state of Australia has their own law body standards as to what level of insurance is necessary for lawyers within that particular state. However, it is compulsory in Australia to obtain Professional Indemnity Insurance. Before taking out a policy check with your relevant law body or council and also with your insurance broker to ensure you are adequately covered. You risk fines if you are caught without this lawyers insurance.

It’s a risky business

As a business owner you are aware of identifying and managing your risks. One of these risks is liability for the advice you give. Such would be similar for a contractor working in construction taking out a Public Liability policy due to the increased risks of injury or third party damages. Ensure you protect your business against the risks which are the most likely to occur. Professional Indemnity Insurance for lawyers can help protect you against negligence claims, omissions, loss, errors, and incorrect information or advice given.

Protect your reputation

Professional Indemnity can help protect your business financially, not only with claims against yourself but also your partners, employees or contractors. It can also help demonstrate your professionalism and industry standard behaviour to maintain a positive reputation in a cutthroat industry.
Get online now to obtain a quote for lawyers Professional Indemnity Insurance. Call us on 1300 GET COVER today, email at info@contractorcover.com.au or fill in our easy online quoter. All information provided above is of a general nature, if you need specific advice we recommend speaking to a broker.

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General advice on this website has been prepared without taking into account your objectives, financial situation or needs. Before acting on the advice, please consider its appropriateness. You should also consider our disclosure documents, which include our Financial Services Guide (FSG) and Product Disclosure Statements (PDS) for some products.
*Retail clients are individuals or those purchasing an insurance product for use in connection with a small business where the product is a designated retail product (eg motor vehicle, home buildings, home contents, personal and domestic property, sickness and accidental and travel insurance). All other clients are wholesale clients.

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