As a tradie, it’s easy to assume that professional indemnity insurance doesn’t apply to you. However, if you provide advice to your clients as part of your work and you charge a fee for that advice, you may need indemnity insurance in place. So, how much of an impact will professional indemnity insurance have on your bottom line? Let’s take a look at what you can expect when you’re looking for a professional indemnity insurance quote.
What is professional indemnity insurance?
Firstly, you may be wondering what professional indemnity insurance actually covers. Professional indemnity insurance is designed to protect you financially if a third party claims financial loss following a breach of duty or negligence. While professional indemnity insurance won’t apply to all tradies, there are certain trades for which indemnity insurance is an important consideration. This is particularly the case if you give design or specification advice, such electricians or tradies working in the construction industry. Professional indemnity insurance provides peace of mind that you’ll be covered in the event of a claim.
What does professional indemnity insurance cover?
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 insurance cost?
The cost of your professional indemnity insurance will depend on a number of factors. These include 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 and how much cover you require. The higher your risk of an indemnity claim, the more your insurance premiums will cost. The cost of your insurance will also depend on the specific policy you take out. Remember not to opt for the cheapest policy you can find – you need to be confident that you have the right level of cover in place and a cheaper policy may mean that you don’t have the right level of cover.
At All Trades Cover, we’re one of Australia’s fastest growing trade insurance brokerages. We’re dedicated to protecting your risks and have developed a trade insurance package which is specifically suited to your risks as a tradie. As an added bonus, you’ll also receive a free initial consultation for any legal advice you may require. If you’re not sure what kind of insurance cover you require, give our team a call today.
For a professional indemnity insurance quote, contact All Trades Cover today on 1300 826 850 or visit our website.