Professional Indemnity FAQs

Have a question about PI insurance? We’ve got answers!

Professional Indemnity Insurance FAQs

1. What does being a 'professional' mean?

Anyone who gives advice or provides skilled services is considered a professional. This includes roles like engineers, graphic designers, IT consultants, and financial planners, as well as traditional professions like lawyers and accountants.

2. Why do professionals need Professional Indemnity (PI) insurance?

Professionals are human and can make mistakes. PI insurance covers any financial losses caused by these mistakes. It may also be required by law, by your professional association, or in contracts.

3. What does a PI insurance policy cover?

PI insurance protects both your personal and business assets if there’s a claim against you. It also helps cover the costs of defending a claim, protecting your business’s cash flow and balance sheet.

4. What is a ‘claims made and notified’ policy?

This means you have to notify the insurer of any potential claims during the period your insurance is in effect. This differs from an ‘occurrence policy’, where the event just has to occur during the insurance period.

5. What does Civil Liability Professional Indemnity cover?

This covers you for claims that arise from any civil liability imposed by a civil court, as opposed to criminal liability. It’s broader than a ‘negligence wording’ and can cover you even when there’s no negligence involved.

6. Why do I need to fill out a proposal form for PI insurance?

The form helps insurers understand your business so they can provide you with suitable coverage. You might also need to provide additional documents like a CV or corporate brochure.

7. What does ‘costs inclusive’ and ‘costs exclusive’ excess mean?

‘Costs inclusive’ means you pay part of the legal and defence costs. ‘Costs exclusive’ means you only pay towards the settlement of a claim, not the legal and defence costs.

8. What is a retroactive date in PI insurance?

This is the date after which your insurance covers your actions. Any act or error after this date will be covered by your policy.

9. What is continuous cover in PI insurance?

This means that if you’ve been insured with the same insurer for unbroken periods, they will cover claims that should have been notified in an earlier period.

10. What is automatic reinstatement in PI insurance?

This increases the aggregate limit of all claims against your policy in a policy period. It doesn’t increase the limit for any one claim.

11. What does ‘circumstance’ mean in PI insurance?

This refers to any situation that a reasonable person might think could lead to a claim. If you’re unsure whether something might lead to a claim, it’s better to notify your insurer.

12. What’s the difference between jurisdiction and territorial limits in PI insurance?

‘Territorial limit’ is where the error or omission occurs. ‘Jurisdiction limit’ refers to where a claim can be brought within the court system.

13. What kinds of claims can PI insurance cover?

Claims can arise from professional negligence, fraud or dishonesty by staff, defamation, loss of client documentation, wrongful or inadequate advice to clients, and breaches of trade practices or fair trading legislation, among other things.

14. Who requires Professional Indemnity insurance?

Professionals that give advice should have PI insurance. This includes accountants, architects, engineers, consultants, IT professionals, real estate agents, and more.

15. How long does it take to get a PI insurance quote from Webber Insurance?

Most quotes are provided within 24-48 hours. For more specific requirements, feel free to reach out to us.

16. What should I consider when choosing a PI insurance policy?

Consider factors like the level of excess, coverage for past work, number of reinstatements, territorial limits, description of work, and endorsements & exclusions.

17. How do I arrange a quote with Webber Insurance?

You can complete our online proposal form. If you need help or have questions, you can call us or chat with us live on our website.

18. Can Webber Insurance provide multiple quotes for PI insurance?

Yes, once we have your completed proposal form, we can arrange multiple quotes for you where required.

19. Can Webber Insurance give me a pricing indication over the phone or chat?

In some cases, we may be able to give you a pricing indication over the phone or chat, but to arrange a quote, we need a completed proposal form.

20. What happens if a claim is made against me?

If a claim is made against you, your PI insurance policy will cover the financial loss, allowing you to continue running your business without major interruptions. For detailed information on the claims process, visit our Claims Page.

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