Generally? Between $51 to $100 for small businesses. If you’re in the business of offering your professional opinion to people, it’s very important that your clients know exactly what you’re offering, and what you’re not. Because often, when clients believe their businesses or lives has been negatively affected by your professional advice – in what they deem your negligence, they can sue – and often would. Fortunately, this is where professional indemnity insurance comes in.

 

What is Professional Indemnity Insurance?

 

It’s a type of protection for professionals in the event that they get sued for the professional advice they provide. It’s intended to cover the claims made against your business in the event of a law suit for negligence, omissions or losses incurred by a client. It can also help you offset some of the legal fees associated with the law suit. Depending on the type of law suit you’re paying for, you might in get PR thrown in, to protect your firm’s reputation. In most cases however, professional indemnity insurance would cover both breaches of an agreement (if you don’t hold your end of the bargain), and mistakes that occur during delivery.

 

How Much is Professional Indemnity Insurance in Australia?

 

As with all services, there are no fixed costs, but rather a spectrum. The type of coverage you want, and the reputation of your insurers will determine the cost. If you have a history of making claims, work in an industry with high law suits, and have a relatively big company, you can expect your monthly premiums to exceed those of a 2 person law firm dealing with family custody cases. The general costs of Professional indemnity can range any where from $84 for a small business to hundreds of dollars for a big firm.

 

Do you need one? The benefits of a PI insurance can’t be quantified, especially if you’re in the “professional opinion” business. The reason is simple, clients will sue if they feel slighted. And even if you end up winning the case, you’d still have a ton of legal fees to deal with. Visit our website to know more about professional indemnity insurance https://www.iselect.com.au/business-insurance/public-liability/