Each day professionals need to make decisions. Businesses that provide professional services or advice run the risk of claims against them if their advice or service turns out to be unsatisfactory.
In businesses, reputation is crucial. It can take years to build one, but an accusation of negligence, professional misconduct, or a breach of your duty of care can destroy it in the blink of an eye.
Even if you are not at fault, you may have to spend significant amounts on legal fees to prove that the liability isn’t yours. Manage the risk to you or your business with Professional Indemnity (PI) Insurance.
Are you liable?
Picture this. Your marketing agency is involved in the launch of a client’s new product. There is a mix up with the order of a TV ad campaign designed to tease the new product, which is broadcast across all the major stations.
You insist that the error was the fault of someone at the production company. Regardless, the client insists that the agency pays for the extra airtime necessary to address the mistake.
Whether you believe you are in the wrong or not, if a client’s complaint relates to a potential mistake that you have made on the job, there are grounds for legal action against you.
What is PI Insurance?
In New Zealand, Professional Indemnity Insurance, or PI Insurance, is designed to protect individuals and businesses that provide professional services or advice to clients from potential legal costs and claims.
This includes settlements out of Court or awarded in Court, for damages that may arise from any type of professional mistake, be it an act, error, omission or breach of duty in the course of business.
Liable or not, the legal costs of defending yourself can seriously affect your business, and the demand for compensation can be very expensive.
What does PI Insurance cover?
PI Insurance can cover your fees in the event of an error resulting from negligence in your professional services or advice. It seeks to protect both your assets and your reputation.
Fees can include legal, court, public relations, and compensation payments, often taking into account any financial loss that a client has suffered.
Do I need Professional Indemnity Insurance?
Any business or individual providing a service or advice to their clients should consider a professional indemnity insurance policy. In fact, many professionals need to have PI Insurance as part of regulatory requirements.
Fuelled by environments of increased responsibility, it provides cover for accusations of negligence, professional misconduct, or a breach of your duty of care.
But even if you are not obliged to have it, without it, you could be liable for the costs of legal fees and compensation payments – not to mention lost income from the time spent defending any possible allegations.
How can we help?
At Wayne Grayson & Associates, we believe an informed insurance decision is the right one. Whether you’re after business or personal insurance, our expert brokers will ensure your insurance is the right fit for you.
Our PI Insurance is designed for professionals who provide a service to their clients, and provides cover if you make a mistake: an act, error, omission, or through conduct being misinterpreted.
Get in touch today to take the first steps toward making an informed insurance decision.