Your job as a professional requires you to apply your expertise to satisfy the requirements of your clientele/patients. Your customers count on you to provide high-quality services and expert guidance. However, despite your best efforts, there’s always a chance that something could go wrong. You run the danger of damaging tools and property or injuring your clients. This could put you or your staff at risk of being the target of a costly legal battle or compensation claim.
Therefore, it’s crucial to protect your work premises and equipment and your company.
Whatever your area of expertise, it’s critical to safeguard yourself against unforeseen expenses with professional services insurance in case something goes wrong.
Whether you’re a consultant, accountant, freelancer, architect, or some other professional, here’s a list of potential coverage options if you need professional services insurance in Australia (or wherever you are based).
1. Professional Indemnity Insurance
Professional indemnity insurance offers protection against lawsuits filed against a business, its owners, its partners, and its workers. It covers claims made against you related to the performance of your professional activities.
If providing designs, specifications, recommendations, or instructions is part of your job, professional indemnity insurance will protect you. It will help if a client sues you for something you did or advised, causing your customer to suffer financial loss.
2. Cyber Insurance
Ransomware attacks, cybercrime, privacy incidents, data breaches, and other risks can cost professional service organisations a lot of money and reputational damage.
Cybersecurity or cyber insurance is designed to provide coverage during such situations.
3. General Property Insurance
Professionals, like photographers, architects, and engineers, typically bring specialised equipment to and from their business premises and client locations. This can include electronic instruments, mobile phones, top-of-the-line computers, and photographic equipment — which all need to be protected and specified in the policy schedule.
These products can be quite expensive to fix or replace if they are accidentally damaged or stolen. However, with general property insurance, these items can be protected while you’re at work or travelling.
4. Building and Contents Insurance
Building and contents coverage includes both the property where you operate or work and the items inside. It protects your commercial property and the goods or items within if they are damaged in a natural disaster, electrical fire, break-in, or other unexpected occurrences.
5. Business Interruption Insurance
Risk is an inherent aspect of business. Structures deteriorate, water tanks leak, and staff members can make costly errors. Unexpected natural disasters like fires, tornadoes, hurricanes, and flash floods can also abruptly close down a business. They can destroy inventory, damage machinery, and even ruin buildings.
When such things happen, it can take months to get your business back up and running. Business interruption insurance ensures you have money to make up for your revenue loss immediately following a forced closure or while your company is unable to run. It covers your operating costs, wages, and net loss, as well as your taxes, electricity bills, and mortgage.
Cover the Bases and Protect Your Business
Ensuring you have professional services coverage is crucial to the survival and longevity of your business. By opting for the various types of insurance mentioned here, you’ll be better equipped to deal with unforeseen events that can lead to business losses.
When choosing a professional services insurance package, ask questions and ensure you are clear about what specific items are covered in your policy.
If this article has inspired you to think about your own unique situation and, more importantly, what you and your family are going through right now, please contact your advice professional.