Professional indemnity?

[Georgie]

So, is PI the same thing as Work Cover? I find myself having to get some PI but because I am also an employee of my company, I'm assuming I need work cover. Tis all very confusing. Any tips and pointers? Links to useful insurance brokers that you've had good experiences with are welcome too!

[BrightBiz]

Originally Posted by Georgiecarpenter@hotmail.

So, is PI the same thing as Work Cover? I find myself having to get some PI but because I am also an employee of my company, I'm assuming I need work cover. Tis all very confusing. Any tips and pointers? Links to useful insurance brokers that you've had good experiences with are welcome too!

As far as I'm aware, professional indemnity cover will cover you for any advice or work you supply to other people in the instance that they believe you did not fulfill your obligations or you somehow caused harm or damage to them or their business. (Just my understanding )

what cover etc you require also depends on if you are working as a sole trader, trust or company etc. As a sole trader your business profits are your personal income. As far as i'm aware this means you are "obligated" re: super etc but it's definitely something you'd want to allow for. You aren't officially and "employee" if you're a sole trader, however if you established your business as a "company" then you will effectively be an employee/director of your company normally and different cases apply.

This is just my general understanding, so I hope it's correct but most of what you need to know can definitely be found on the ATO website

[colourzone]

Originally Posted by Georgiecarpenter@hotmail.

So, is PI the same thing as Work Cover? I find myself having to get some PI but because I am also an employee of my company, I'm assuming I need work cover. Tis all very confusing. Any tips and pointers? Links to useful insurance brokers that you've had good experiences with are welcome too!

Hi I have used the services of

Warwick Andison of Intertrade Insurance Services Pty Ltd,

His email: warwicka@westcourtgeneral.com.au mob: 0411 609 600

He is an insurance broker and can explain it all to you and also offers competive rates etc... he takes the worry out of all types of insurance..

Fidelma from colourzone

[fiona@vas]

Hi Georgie,

there's a succinct list of types of insurances for business and a brief description of each at the National Insurance Brokers Association website:

http://www.niba.com.au/html/34056.cfm

Hope that's useful!

[Flying Accountant online]

Hello BrightBiz

I run an accounting firm and am well qualified to comment.

Please dont take anything as advice - you need to consult with your accountant on your own situation - but this is a general comment.

It sounds as though you are operating through a Pty Ltd company of which you may be a Director, Shareholder and Employee.

If you are paid directors fees or a salary by the company, then the company is required to hold a workcover policy. This covers you in the event you are injured at work while performing your job or travelling to and from work. It is compulsory and you must have it by law. A good place to start is the work cover authority of Victoria - do a google on them and you will get all the information you need. The policy charge depends on many things such as the industry in which you work and its injury claim history, type of work being undertaken - manual or clerical etc.

Professional Indemnity is taken out by the company as insurance against anything that you do wrong whilst giving advice to your clients etc. If you advidsed a client on a particular matter and your advice was wrong, you could be sued. Your PI policy will cover this. It is a very specific are of insuranace and you need to speak to a licensed insurance broker qualified in the area of giving advice on the type of insurance you need.

The other type of insurance you might think about is Directors and Officers insurance - this insurance covers you as a Director of your company. Keep in mind that any claim brought against you for wrong doing would first be mounted against the Company in its own legal right and then you as a Director. Again your insurance agent can talk to you about this.

Welcome to the world of business - there are many complex issues that you need to consider and it is really imperitative that you get a good accountant and good lawyer to guide you through the maze.

Hope this helps
Martyn

[Merlin McCloy]

Hi

I am the principal of a licensed Insurance Broker (Mojomo Ins Brokers www.mojomo.com.au). Workcover is a government body responsible for managing the workers compensation fund and overseeing work place occupational health and safety standards it funds employees with workplace injuries or illness. You will find each state has a website which can assist you but your General Insurance Broker or Accountant can certainly assist.

A Professional Indemnity Insurance policy typically indemnifies the insured for amounts which they become legally liable to pay as a result of any actual or alleged negligent act, error or omission in the conduct of their business or profession. Costs and expenses incurred to investigate, defend or settle any claim are also included, in some circumstances in addition to the policy limit, otherwise inclusive of the limit.

The insurer pays to defend your position and reputation, and does not just pay a loss. Professional Indemnity is written as a ‘claims made’ policy, we can provide a full explanation on this type of insurance.

Thank heavens an Insurer has just introduced to the market a combined PI and Public (Broadform) Liability (PL) Policy for Service/Professional services industry which Brokers have been requesting for years.

If we can assist you with further information or provide a quote please call
Freecall 1800 24 33 12.

Regards, Merlin

[Georgie]

Thanking you all for your replies. Most helpful!

[The Cafe Ninja]

Originally Posted by Georgie

Thanking you all for your replies. Most helpful!

I've just shopped around for PI & Public liability insurance and found Aon to have the most competitive price by quite a large margin. Just give them a call and ask for the Professional Indemnity section - (02) 92537000.

[Mumnesia]

Hi Georgie,
PI and workcover are not the same!!
Depending on your business structure, ie if you are a sole trader and employ others, even contractors, you must have Workcover insurance, make sure you keep all expired insurance papers for at least 7 years.
As a sole trader you are obligated to pay the bill and be completely & utterly responsible, but you are not covered if an accident happens to you; for cover you will need to take out private business insurance. If you are a company and obtain wages as an employee, then you should include yourself as a staff member to have the same protection.

I, being human and thinking it was logical, threw out the old expired papers when the new one came into affect. On a random rampage of a tryannal workcover inspector one day, I was left holding fines of $5,500 for each year from 2006 to 2010 and not given an opportunity to contact our insurance company to procure copies.
I need to pay $27,500 within 3 weeks or I will go to jail.
Does anyone want to buy a car, a really good bike, an old engagement ring, 5 agreeable children that have strong work ethics (though the youngest might go of with the fairies more times than not) and a mum who can clear the house in under 3 mins by just saying "I'm cooking tonight"?

[tahera]

Hey guys,
i also established my own business, I thought i only need one insurance and that is PI which i would get it in new financial year as it will become compulsory for all businesses to have.

Is that it or i should have any other insurance.... please reply in two simple sentence... i am feeling lost with one page replies from individuals on this matter....sorry no offense but i am really lost!
cheers