Professional indemnity insurance is designed for professionals who provide professional advice or services as part of their job. It provides financial protection against claims from a third party following financial loss due to a breach of professional duty or negligence resulting from an act, error or omission. It not only covers the costs associated with a claim but also legal bills involved with the process.
Errors and Omissions
Errors and omissions insurance is a form of professional indemnity insurance which is aimed at individuals who don’t typically provide professional advice as part of their job.
- Even though tradies don’t tend to offer professional advice, you may incidentally give advice that places you at risk of exposure to an indemnity claim.
- In these instances, errors and omissions insurance will provide financial protection against negligence resulting from an act, error and omission.
Why It's Important
As a tradie, you probably haven’t thought much about any form of indemnity insurance and for good reason – it often doesn’t apply to you due to the more hands on nature of your work. However, many tradies are still vulnerable to indemnity claims after providing incidental professional advice, even if you don’t charge for this advice. If you find yourself at the receiving end of an indemnity claim, this can be a very time consuming and costly process which is where indemnity insurance comes in. Your insurance will cover costs involved with a claim and the level of cover will depend on your specific policy.
In some cases, you may be required to have errors and omissions insurance in place as a requirement of a contract. If you’re not sure if this form of cover is necessary for your work, have a chat to one of our experienced insurance brokers and get a indemnity insurance quote as per your needs.
What's the Cover for Trade Professionals?
Your professional indemnity insurance cover will protect you against a number of costs, including:
- Legal costs – In most cases, you’ll need to hire a lawyer during the claims process to act on your behalf during legal proceedings.
- Public relations costs – Following an indemnity claim, you may face a damaged reputation and your indemnity insurance can cover the costs of hiring a public relations professional.
- Investigation costs – Indemnity insurance will cover costs associated with investigating a potential indemnity claim.
- Damages costs – If you’re required to pay damages after settling an indemnity claim, your professional indemnity insurance will cover these costs.
How Much Does Professional Indemnity Cost?
- The type of work you undertake
- The size of your business
- The number of employees you have
- Your annual turnover
- Your history of insurance claims
- How much cover you require.
If you’re not sure what kind of insurance cover you require, give our team a call today.
At All Trades Cover, we understand that you sometimes need a little extra protection which is why we have extensions available on your trade insurance package. As optional additional coverage on your package, we can provide errors and omissions insurance. This policy provides an optional extension for errors and omissions cover up to a certain limit. If you require more comprehensive indemnity cover, speak to one of our insurance brokers and we can discuss higher levels of professional indemnity insurance.
To find out more about errors and omissions insurance and how it applies to your work, speak with the team at All Trades Cover.