Insurance can be a confusing business, especially when you’re dealing with Professional Indemnity insurance*. However, you can make sure you get the Professional Indemnity that is suitable for you by asking the right questions. Here are seven things you should take into consideration when purchasing Professional Indemnity insurance.
1. Are you legally required to hold Professional Indemnity insurance?
Regardless of your certifications and professional status, many regulatory bodies will legally require you to have a certain level of insurance in place to operate legally. In addition, some professional bodies, such as Chartered Accountants ANZ, will require evidence of your Professional Indemnity insurance before permitting your membership.
Make sure you do the necessary research to ascertain what your business requires to ensure you have the coverage you need
2. What risks does your business face?
Next, you should carefully review your risks and exposures to ensure that you have the minimum level of coverage required to cover those risks in the worse-case scenario. Consider the following:
- In what areas do you intend to practice?
- What technologies will you use?
- What is your experience and expertise?
- What control processes do you have in place?
- On what scale are your proposed projects?
- What is your maximum potential exposure?
3. What does the policy include and exclude?
Every Professional Indemnity insurance policy is different. That’s why it is important to take the time to sit down and understand the nitty gritty of your policy, especially what is included and excluded with your policy. This will help to ensure that you have the appropriate protection and coverage you need.
Some policies may also provide coverage for the following:
- Damages and claimant costs awarded against the insured
- Legal and defence costs
- Claims investigation costs
- Inquiry attendance costs
- Public relations costs
Comparison sites can help you to compare different insurance policies so you can better understand which one is right for you.
4. Will the insurance cover contractors or subcontractors?
If you use contractors or subcontractors, you should verify that the Professional Indemnity policy includes cover for any liability associated with these individuals.
5. Will the Professional Indemnity policy be enough to meet your needs?
Spending some time on understanding your potential risk exposures is a simple step you can take when trying to arrange an appropriate type of Professional Indemnity insurance policy for your business.
There are many different risks your business may be exposed to, and there are a variety of different business insurance coverages to help provide you and your business peace of mind and protection.
At BizCover we offer accountants a range of business insurance solutions in the click of a button. We don’t believe in fancy insurance jargon and messy paperwork to fill out, just insurance made easy. Get a quote today and start protecting your business.
* This information is a general guide only and does not take into account your objectives, financial situation or needs. As with any insurance, cover will be subject to the terms, conditions and exclusions contained in the policy wording. The information contained on this web page is general only and should not be relied upon as advice.
The provision of the claims examples are for illustrative purposes only and should not be seen as an indication as to how any potential claim will be assessed or accepted. Cover for a claim will depend on the specific circumstances around the loss and would be subject to the terms and conditions of the policy concerned.