For many companies, the need for professional indemnity insurance is not even a question. This is due to the fact that many professionals need it just to get licensed by the government. For companies that are not legally required to have coverage, the decision may not be quite as clear. For these companies, it is important to consider the risk that is involved in not being covered.
The first thing to realize is that a policy for public liability will not cover the types of events that are covered by professional protection. If you or an employee fails to meet the standards of professional conduct in your field, a policy for public liability will probably be of little use. Professional indemnity insurance can obtained via reputable online websites such as www.ProfessionalIndemnityInsured.com.au. The events that require this additional coverage can range from breach of contract to negligence, poor advising, professional oversight and a lack of good faith or fair dealing.
The reason that this coverage is important is due to the cost of litigation and claims related to professional conduct. Even if the company or individual is not at fault, funding and organizing a defense against the claim can be costly. If the company is found to be at fault, the financial impact of having to pay the claim can be enough to send a business into bankruptcy. With these facts being known, the importance of this coverage is obvious.
If your company is exposed to these types of risk, it would be wise to get professional indemnity insurance. On the Australian insurance market, there are many companies that offer this type of cover. In many cases, getting a policy can be as easy as going online and shopping for insurance quotes.