Professional indemnity insurance is a form of business insurance designed to protect businesses and professionals from the financial losses associated with claims of negligence or mistakes made in the course of their work. It is important for businesses and professionals to have this type of insurance in place to protect them from potential liabilities and financial losses.
In New Zealand, professional indemnity insurance is not compulsory, but it is strongly recommended that businesses and professionals consider taking out a policy to protect them from potential future claims. Professional indemnity insurance can cover a wide range of professional services, including consultancy, accounting, engineering, legal services, and many more. The cost of the policy will depend on the type of business and the services provided.
Types of Professional Indemnity Insurance in New Zealand
The types of professional indemnity insurance that are available in New Zealand vary depending on the type of business and the services provided. Generally, there are three types of professional indemnity insurance available:
- General Professional Indemnity Insurance – This type of policy covers the general professional services provided by the business. This type of policy is suitable for businesses that provide a variety of services, such as consultancy, legal services, accounting and engineering.
- Specialist Professional Indemnity Insurance – This type of policy covers specific services provided by the business. This type of policy is suitable for businesses that provide specific services, such as medical or dental services, or engineering services.
- Combined Professional Indemnity Insurance – This type of policy covers both general and specialist professional services provided by the business. This type of policy is suitable for businesses that provide both general and specialist services.
What Does Professional Indemnity Insurance Cover in New Zealand?
Professional indemnity insurance in New Zealand covers a range of liabilities and losses that may arise from mistakes or negligence in the course of providing professional services. Generally, the policy will cover the following:
- Legal expenses – The policy will cover the legal costs associated with defending a claim or settling a claim.
- Compensation – The policy will cover any compensation payments that may be payable to a client as a result of a mistake or negligence.
- Loss of documents – The policy will cover the cost of replacing or restoring documents that have been lost or damaged.
- Incorrect advice – The policy will cover the cost of providing advice that is incorrect or misleading.
How Much Does Professional Indemnity Insurance Cost in New Zealand?
The cost of professional indemnity insurance in New Zealand will vary depending on the type of business and the services provided. Generally, the cost of the policy will be based on the turnover of the business and the number of employees. Policies can range from a few hundred dollars to thousands of dollars per year.
It is important for businesses and professionals to shop around for the best deal on professional indemnity insurance. The cost of the policy can vary greatly between different providers, so it is important to compare quotes from a number of different insurers to get the best deal.
Conclusion
Professional indemnity insurance is an important form of business insurance for businesses and professionals in New Zealand. The cost of the policy will vary depending on the type of business and the services provided. It is important to compare quotes from a number of different insurers to get the best deal on professional indemnity insurance.
