Professional liability insurance protects a company and its employees when they are sued for an act, error or omission in relation to professional advice given.
The policy covers the Insured against a legal liability to compensate third parties for injury, loss or damage due to the professional’s breach of professional duty in the conduct of their profession/business/occupation or that of their employees caused by an act error or omission/civil liability.
Who is a professional?
The definition of a professional has changed dramatically over the past 10 years. Generally speaking though, the offering of advice and services by a skilful character according to an established discipline might best define a professional.
What is covered?
- interest and costs
- defence costs
Type of claims
- civil liability arising out of an act error or omission
- libel, slander or defamation against a third party
- loss of client documentation
- legal liability for damages and claimants’ costs/expenses arising from the act, error or omission/civil liability of the “company’s” employees.
- wrongful or inadequate advice to a third party
- acting without proper instructions or failure to act in accordance with the third party’s instructions
- failure to advise third party
- breaches of Trade Practices Act/Fair Trading Legislation – e.g. misleading or deceptive conduct
- breaches of statues – e.g. Corporations Law, Uniform Consumer Credit Code