Top 3 reasons to take out professional indemnity insurance

Businesses of all shapes and sizes face a wide range of risks, but it's how you deal with them that makes the biggest difference. It doesn't matter whether you're a sole trader providing financial advice or a member of a large firm of accountants, professional indemnity insurance could well be the most important purchase you ever make.

Here are the top three reasons why you can't afford to be without professional indemnity insurance, regardless of what industry you're a part of.

1. You're only human!

Everyone makes mistakes, but unfortunately for those in certain professions, these can be more costly than others. While insurance won't prevent these situations from occurring, it will give you some protection when dealing with the financial and reputational repercussions.

Some of the most vulnerable to these claims are those in the medical profession. New Zealand introduced a no-fault compensation scheme back in 2005, which meant that taxpayers would provide pay outs for medical injury.

As a result, compensation is awarded based on outcomes, so it can be granted regardless of fault or negligence. Medical professionals are therefore held to account based on the process of care, rather than being judged on the injuries sustained by their patients.

2. Clients have the right to hold you to account

There are various trade bodies in New Zealand that have been set up to give members of the public confidence in the professional services they receive. No matter what industry you work within, there's likely to be an organisation in place to regulate your conduct and provide redress whenever it is needed.

ACCA, for example, is a leading global accountancy body in both Australia and New Zealand. It warns that accountants may find themselves liable for negligence in situations where their clients have suffered a substantial loss and their duty of care hasn't been met.

Meanwhile, lawyers may be rebuked by the New Zealand Law Society if they are found to be negligent in their role. It often reports on tribunals where members of the profession have been suspended or had their licences revoked as a result of falling foul of the required standards.

3. Industry-specific policies are available

The needs of a medical professional will no doubt be completely different to those of an accountant, which is why it's so important to go in search of a tailored policy.

Here at Rothbury, we understand that your professional requirements are unique, which is why we only ever provide indemnity policies that are suited to your individual needs.


Allan Henderson

About the Author

Name: Allan Henderson        

I’m the Leader - Business Development & Sales for Rothbury’s Wellington branch. I have over 20 years experience in the insurance industry and get a kick out of finding insurance solutions for my clients.

I enjoy leading and…
Read More

I’m the Leader - Business Development & Sales for Rothbury’s Wellington branch. I have over 20 years experience in the insurance industry and get a kick out of finding insurance solutions for my clients.

I enjoy leading and developing people (including my 3 children although they may not appreciate my leadership skills at times – or ever for that matter) and am part of a really experienced team who have a lot of fun here in Wellington.

Close

Disclaimer: The articles published on this blog are designed to provide general information and do not take into account any individual’s particular circumstances. We recommend that you obtain professional advice on your requirements before making any decision about a financial product.

Submit A Comment





 


Feedback & Comments

No one has posted yet! You could be the first!

© Copyright Rothbury Insurance Brokers 2017 | PRIVACY POLICY | TERMS & CONDITIONS | STAFF LOGIN |Site Design & Build By Exceed