Do you provide a service for a fee and advice that other rely on to make a decision to purchase a product or service? If you’re in the business of providing advice, whether it be direct or indirect to your clients, then there is something you need to do before you take on another client and that is consider purchasing professional indemnity insurance.

1. 3 FACTS ABOUT PROFESSIONAL INDEMNITY
INSURANCE THAT YOU SHOULD KNOW
BEFORE TAKING ON A CLIENT

2. Professional Indemnity Insurance
Do you provide a service for a fee and advice that other rely on to
make a decision to purchase a product or service?
If your in the business of providing advice, whether it be direct or indirect to
your clients, then there is something you need to do before you take on
another client and that is consider purchasing professional indemnity
insurance.
You may have thought you don’t need insurance protection. Perhaps you
work out of a small office where you don’t have physical contact with your
clients. That doesn’t matter. You can be working out of your home office and
you’re still going to need professional indemnity insurance. Why? Because if
you provide a professional service and advice that others rely on to make
their decision based on your expertise, then there is always a risk of error or
omission if the person that relied on suffers a financial loss.

3. Advice for a Fee
It is important if you provide advice and charge a fee for your services that
you strongly consider the need for a professional indemnity insurance policy
so that you can be protected in case something occurs. Even if you have an
excellent track record of keeping your clients satisfied, you just don’t know
when the unexpected might happen.
In business, no one ever sets out to intentionally have a claim. An attitude of,
“I don’t need it because I never make mistake or no one will ever make a
claim against us as bad things never happen to us in business” is not the
type of thinking you should possess. You should possess thinking more along
the lines of, “Nothing bad ever happens in my business, but this is good
protection to have just in case the unthinkable occurs.”

4. Benefits of PI Insurance
•
Peace of mind.
•
Saving your valuable time in the incidence of any allegation.
•
Reducing the possibility of an interruption to your business.
•
Reducing the probability of lost income arising from an interruption to
your business by providing time that would be required to defend an
allegation without Professional Indemnity insurance.

5. Getting Protection
Whether your business is new or well established, it is wise to make sure that
you are protected. You do not want to cause a loss for a client and then have
to pay for that out of your pocket. Legal costs associated to defending
matters are expensive, generally in the tens of thousands let a lone if you’re
found to be liable to pay compensation or damages.
So make sure you get insured now so that you can go on with your business
knowing that in the case a disaster strikes within your business, you’ll have
the insurance in place to provide protection in the event of the claim.

6. 3 Facts About PI Insurance
•
It is affordable – With in Australia there is a broad insurance market for
Professional Indemnity Insurance with a large number of insurance
offering cover at very competitive prices. The fewer the perceived risks,
the cheaper your insurance is going to be.
•
Policy coverage – Tailored coverage specifically based on your business
activities. If you’re a web designer, you do not have to worry about
receiving the same coverage as an accountant. The businesses are
different, so the coverage is too.
•
It is professional – Having Professional Indemnity Insurance provides
you protection in the event your client suffers a financial loss as a result
of your negligence. Many businesses when dealing with consultants or
professional advisers, will request confirmation of their Professional
Indemnity Insurance prior to entering into a contract of service. It is part
of best business practice.

7. Professional Indemnity Insurance Quote
To obtain a quotation, enquire online at www.optimuminsurance.com.au.
In most circumstances we are able to provide an quote over the phone. If
you would like to discuss your needs further, contact us on 1300 739 861.
Policy coverage is always subject to the terms, conditions and exclusions of
the insurance contract and policy wording provided by the insurer.
Each insurance company has its own policy wording. This means that
coverage can vary considerably from one insurer to another. It is vital that
you compare each policy based on the appropriateness of cover for your
individual or business needs.
As Insurance Advisers, it is our role to understand the terms and conditions,
so contact us now for advice and a quote.

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9. Contact Us
Phone
Fax
Hours
Email
+61 1300 739 861
+61 1300 732 225
9.00am to 5.00pm (EST)
Monday – Friday
service@optimuminsurance.com.au
Website
www.optimuminsurance.com.au
Presentation Disclaimer –– “This material contains general information only and may not suit your
particular circumstances. To decide if a policy is right for you please carefully read the relevant Product
Disclosure Statement (PDS) and/or Policy wording. A copy of the PDS or policy wording is available by
contacting our office on 1300 739 861;”
Disclosure Statement – “Optimum Insurance Services Pty Ltd is a Corporate Authorised
Representative of Insurance Advisernet Australia Pty Ltd (Car No. 291220), Australian Financial Services
Licence No 240549, ABN 15 003 886 687.”