If you are being paid to act in a professional capacity you may be liable in the event that a client or patient suffers damage or loss arising from the shortcomings in your work. This includes giving professional advice, or the design of structures or systems. Even though a claim may eventually be rejected, the cost of defending them can severely damage a practice.
Do I need Professional Indemnity Insurance?
It’s important to understand the nature of professional liability. In the case of physicians and health professionals, the answer is clear, and maintaining an adequate level of professional indemnity insurance is a statutory obligation. Lawyers and accountants have similarly clear professional liabilities. But anyone who is paid to act in a professional capacity has professional obligations. This includes:
Financial Planners – with a number of recent high-profile court cases making the point, clearly financial planners may be held liable for the adverse consequences of their advice. Professional Indemnity insurance is a vital protection.
Architects and Design Professionals – professional liability for the soundness of building designs can extend to failures or damaging events long into the future.
Real Estate Agents – the professional conduct of real estate agents has attracted a good deal of attention recently; none of it good. One consequence is that a basic level of Professional Indemnity insurance is mandatory in most States.
Business Brokers and Stock Agents – as with Real Estate Agents, licensed stock and station agents and business brokers are required to carry Professional Indemnity insurance as a condition of their license.
Software developers may be liable for the financial losses attributable to faults in their work, and should purchase appropriate insurance cover.
Professionals should protect their practice and their wealth with comprehensive professional indemnity insurance. At GSK we have experts in this challenging field who can create solutions tailored to your individual circumstances.