Scenario one
Jason prescribes the incorrect medicine and is sued for damages.
- What insurance is suitable? Professional indemnity
- How does it work? Professional indemnity insurance is designed to protect you against legal claims for incorrect advice or negligence when performing services.
I am working as a short term educational adviser in the TAFE sector in the Pacific. I have been told I need to get Public Liability and Professional Indemnity insurance. I do not understand why I need public liability as I am working at a TAFE institute.
Hi Angela,
Thanks for your inquiry.
Professional indemnity insurance applies to individuals and organizations involved in providing services based extensively on personal knowledge and skills.
It protects your business against claims for loss by a client or a third party if you make mistakes and are found to have been negligent.
Typically engineers, solicitors, consultants, and accountants carry PII, but many self-employed are also now choosing to have cover if they provide advice, support or contract auditing.
PII covers claims against an individual for a breach of a professional duty but, depending on the policy, cover can extend to:
• Misleading and deceptive conduct
• defamation
• Breach of intellectual property rights
• Damages arising from fraud
• Defence costs associated with claims
Insured amounts can vary depending on the level of risk to which you are exposed.
If you think of some project disasters, these sums are not unreasonable.
Hope this information helped.
Cheers,
Arnold
Where, as an Australian company, can I go to find public liability insurance in Chile?
Hi Tony,
Thanks for getting in touch. Many South American countries require insurance to be purchased in that country and you cannot use an international insurance policy, so you will need to look for insurance from a provider in Chile.
I hope this was helpful,
Richard