If you run a service business, any mistakes that occur in your enterprise could have serious consequences. Even if you are very diligent and provide your services in good faith, it may not always work out so well for the client, and they could bring a claim against you for loss or harm.
Some examples of professional errors include:
- A financial planner provides advice to a client that results in them losing money.
- A solicitor provides legal advice that ends up in additional costs for a client.
- A doctor gives an incorrect diagnosis which leads to increased healthcare costs for a patient.
- An accounting practice has a claim of malpractice brought against them for mistakes in auditing.
Legal action by clients could lead to substantial losses for you and a damaged reputation for your business.
Professional Indemnity (PI) insurance provides financial protection for these sorts of errors and omissions in service businesses. A PI policy can provide cover for legal action taken against the business as well as for other costs, such as legal fees.
In securing PI cover, it’s important to find a policy that is tailored towards your risk level and your industry. To discuss professional indemnity insurance for your service business risks, contact your local Reliance Partners broker.
https://www.business.gov.au/risk-management/insurance/liability-insurance-and-professional-indemnity