Do I need Professional Indemnity Insurance?
Traditionally Professional Indemnity (PI) Insurance was purchased only by the likes of Accountants, Lawyers, Engineers, Financial Planners and Medical Practitioners – by its very nature it was designed for those pure white collar professions – usually a requirement for membership to their Professional Associations or Licensing to Practice requirements.
We have in recent times seen an increasing number of industries purchasing PI cover, outside of these “traditional” Professions. What must be noted is that Public & Products Liability policies exclude in some way or another “the rendering of or failure to render professional advice or services and/or any related error or omission” usually where a fee is charged for this professional advice or service.
What does this mean?
It is a “grey” area, which unfortunately with Contracts of Insurance, can leave clients with uninsured losses that they thought were covered by their Public & Products Liability policy. There is no quick answer, and a thorough review by your Insurance Broker of all facets of your business is the only way of determining whether or not you require PI Insurance to fully protect your business. In more recent times, traditional blue collar trades such as Electricians & Plumbers are purchasing PI cover on a more regular basis, because they do provide their clients with “advice” for fee, with such advice being considered knowledge that particular trade holds over and above the normal lay person. PI Insurance is now readily available for dozens of white and blue collar industries.
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