In Australia, lawyers are required to have professional indemnity insurance. Because they are exposed to a range of risks, they must have professional indemnity insurance in order to practise. Key exposures for lawyers include:
While protecting lawyers, professional indemnity insurance also protects the general public. It ensures that they do not suffer losses, which might otherwise go uncompensated and as such, PI Insurance plays an important role in maintaining public confidence in the integrity of lawyers and the legal system.
Insurance offerings vary widely and you will need to compare policies closely to determine which professional indemnity insurance is right for you. When comparing policies, you should keep the following things in mind:
While a certain level of professional indemnity cover is required for all lawyers, you may also need additional cover to protect against risks particular to your business. So when you find a policy that is close to your requirements, you may need to fine-tune it further in consultation with the insurer to make sure it is a perfect fit for your needs. This is where top-up insurance may be required.
| Response | WA | VIC | SA | QLD | NSW |
|---|---|---|---|---|---|
| once every 3+ yrs | 2.48% | 1.98% | 0.46% | 1.83% | |
| once a year | 1.65% | 0.66% | 2.15% | 1.38% | 1.22% |
| I never compare or switch | 0.83% | 3.63% | 1.38% | 0.61% | |
| more than once a year | 0.83% | 0.66% | |||
| every 2 yrs | 0.33% | 1.08% | 1.38% | 1.53% |
Top-up or excess layer insurance is cover that is in excess of the primary layer of insurance that lawyers are required to have. The limit of cover can be extended above $2 million to as much as $20 million and it is usually taken out when a law firm does a risk assessment and finds that its current level of cover is insufficient.
A lawyer may also consider top-up insurance when taking on a new client. The level of risk the work involves and the cost of insuring against it will influence how much the lawyer charges the client and even whether to take on the work or not.
This is because top-up insurance is not just something you can turn on or off as circumstances dictate. Cover needs to be maintained for up to six years to protect yourself against the possibility that a claim is brought against you at a later date.
As a lawyer, you are probably already aware of the need for public liability insurance. Any business that has dealings with clients and the general public needs such cover to protect itself from claims of personal injury or property damage.
When clients visit your premises or when you visit them at their place of business, an accident is always possible and public liability claims can climb into the millions of dollars, so adequate insurance cover is vital.
Public liability insurance protects you and your employees from claims made for pain and suffering, past and future financial loss and loss of enjoyment of life, which are all components of public liability compensation. Circumstances not covered by this insurance mainly include any injury or property damage that results from a deliberate or malicious act on your part.
Public liability insurance is usually offered as an adjunct to professional indemnity insurance. It is not expensive and should form part of every lawyer’s insurance portfolio as a matter of course.
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Finding the right professional indemnity insurance policy for your business is an important task to make sure your company is protected.
Nursing is a vital profession in hospitals and nursing homes around Australia, but the people who work as nurses are exposed to a unique range of risks. If a nurse were to make a mistake or an error of judgement — for example administer the wrong medication, fail to follow a doctor’s instructions or give incorrect advice to a patient — they could find themselves the subject of a lawsuit for a breach of their professional duty.
This is where professional indemnity insurance shows its worth. This type of cover offers much-needed financial protection for nurses against claims of negligence or malpractice. It covers the cost of your legal defence as well as any compensation you may be legally required to pay to a third party. Public relations costs to repair your professional image are also covered by professional indemnity policies.
In order to find the right professional indemnity insurance policy for you, compare policies at finder.com.au and seek advice from colleagues. Compare quotes from a number of insurers and seek help from an insurance consultant if required.
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Hello, what is the general or lowest cost insurance policy for a law firm?
Hi Robert,
Thanks for your inquiry. Please note that we are not affiliated with any company we feature on our site and so we can only offer you general advice.
Unfortunately, we cannot say what is the lowest or recommend a specific insurance. Please fill out the form on this page to consult an Adviser and get further assistance about Life Insurance or Income Protection Quotes.
Best regards,
Rench