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Professional Indemnity Insurance protects your business from a wide range of business lawsuits.
Professional indemnity insurance protects you from lawsuits related to negligence, errors and omissions, defamation, IP infringement, and much more. Essentially, if you make an accidental mistake while providing a service, and you get sued for it, this insurance will act as a safeguard.
This type of insurance is industry-standard for consultants, accountants, financial service firms, engineers, architects, doctors, charities, and more.
This type of insurance will pay for:
1. Lawyer fees to defend your company from claims of professional negligence
2. Legal damages awarded due to such lawsuits (covers damages and settlements)
Professional indemnity insurance is very important if you operate any kind of professional service business. If you make an error while serving clients, or your service causes damage or injury, your clients can certainly file civil lawsuits against you, demanding you pay compensation.
Unless you have massive amounts of cash to pay for lawyer fees and legal damages, it is very beneficial to have a Professional Indemnity policy that will protect you from expensive litigation.
What does Professional Indemnity Insurance cover in Singapore?
- Errors & Omissions / Negligence / Malpractice: Coverage for your mistakes while performing services for clients.
For example, if you run an Accounting practice and make mistakes while auditing financial statements, your clients could file a civil suit against you for malpractice.
- Defamation: Coverage if you are found guilty of libel or slander.
For instance, you make verbal claims (slander) and written claims (libel) about a competitor’s services that are later found to be untrue, resulting in you being sued.
- Retroactive Claims: Coverage for mistakes that occurred before you bought Professional Indemnity Insurance.
- Professional Indemnity Insurance is usually structured on a “Claims Made” basis. This means that even if your claimable event occurred several years ago, as long as you file a claim while your current policy is active, you’ll be protected. You must have held uninterrupted Professional Indemnity coverage for this retroactive protection to apply.
- Subcontractor Errors: Coverage for subcontractor mistakes that harm your clients.
- IP Infringement: Coverage for accidental violation of Intellectual Property (IP) belonging to someone else.
1. An architect makes errors while drawing up building plans. These errors cause building faults, and delays in the construction project. The client sues the architect for $500,000 in damages.
A nail salon, performing manicures, accidentally causes infections in several clients’ fingernails. The clients collectively file $100,000 in civil suits for negligence, and personal injury.
The coverage terms of each Professional Indemnity policy can be crafted to suit your unique needs. Drop us a message to start crafting your own custom policy.
Do I need Professional Indemnity Insurance?
As long as you provide any kind of professional advice/service to clients, it’s critical that you have Professional Indemnity Insurance to protect your business. For a small annual fee, you immediately protect yourself from lawsuits that could potentially deal a crushing financial blow to your business.
It is standard practice for these industries to have Professional Indemnity coverage:
Financial Services (Financial Advisors, Investment Firms, Brokerages)
- Spas and Massage Therapists
- Condominium MCSTs
How much Professional Indemnity Insurance do I need?
You should evaluate these factors to decide:
Regulatory/Professional Association Requirements: Some industries (e.g. accounting, financial services, law) have legal requirements for how much Professional Indemnity Insurance you need to have.
Worst-Case Scenario: Think about the size of the contracts you accept. What is the maximum amount you could be sued for? And how much would it cost for lawyer’s fees?
Number of Employees: The more employees you have, the more professional liability you are exposed to. Your firm could face multiple lawsuits caused by different employees!
Some types of businesses have more complex liability requirements. If you operate a business that is a financial institution (e.g. asset management), or you provide engineering services, then it’s even more important to carry higher amounts of coverage. A good starting point for businesses in such sectors is $500,000 to $1 million, as a bare minimum.
Our experienced brokers at Provide will help you create a policy that will protect you from the worst legal scenarios.
How much does Professional Indemnity Insurance in Singapore cost?
Professional Indemnity Insurance Policies in Singapore generally begin from $42/month. Prices will vary depending on your business industry, and annual revenue.
With Provide, you save up to 25% on your annual premiums. That’s because our digital operating model creates lower overheads, and we pass every dollar saved back to our clients.
In order to get the best coverage for your business at the lowest cost possible, it’s crucial to work with a great broker. Our industry experts, with 20+ years of combined experience, will:
1. Analyse your unique needs.
2. Craft a custom protection plan for you.
3. Search the market for the best coverage and lowest prices for you.