{"id":2924,"date":"2022-09-27T10:47:47","date_gmt":"2022-09-27T00:47:47","guid":{"rendered":"https:\/\/theonsitemanager.com.au\/news\/?p=2924"},"modified":"2022-09-27T10:47:48","modified_gmt":"2022-09-27T00:47:48","slug":"3-things-you-might-not-know-about-pi","status":"publish","type":"post","link":"https:\/\/theonsitemanager.com.au\/news\/3-things-you-might-not-know-about-pi\/","title":{"rendered":"3 Things You Might Not Know About PI"},"content":{"rendered":"\n

Important features of Professional Indemnity Insurance<\/strong><\/h3>\n\n\n\n

You might already hold\u00a0Professional Indemnity Insurance<\/a>\u00a0(PI), and renew your cover year after year without a second thought, but there\u2019s more to your PI cover than you might think. Because of the way Professional Indemnity policies operate, there are some aspects of the cover that are worth keeping in mind to ensure your policy is providing you with the protection you need.\u00a0<\/p>\n\n\n\n

Your cover shouldn\u2019t end after you stop practising<\/strong><\/h3>\n\n\n\n

With most of your other insurances, the cover often isn\u2019t needed anymore after you no longer have the asset. For example, you might cancel your car insurance after you sell your car. With PI however, if you retire, or simply decide to stop practising, you should consider keeping your cover in place. The cover that stays in place after you\u2019re no longer in business is known as \u2018run-off\u2019 cover.

Run-off cover is a feature under PI that continues to cover you for professional indemnity claims even after you\u2019re no longer in business or practising. This is important for a few reasons. Firstly, when you\u2019re involved in giving advice, the advice can have long-lasting implications, so claims of professional negligence might come about many years after the advice is given.

PI is a \u2018claims-made\u2019 policy, in other words, the policy needs to be in place at the time a claim is made for it to be covered. Suppose you provide a client with advice today, only for them to allege a few years down the track that your advice led to them suffering a financial loss, and they take legal action against you.

In this case, for the claim to be covered under your Professional Indemnity Insurance, the policy needs to be in place at the time the claim is made. It is not enough that the policy was in place when the advice was given. Remember, run-off cover is not automatically included under PI \u2013 it needs to be applied for, and an additional premium may apply for it to be effective. Your broker can advise you whether an additional premium applies or not.<\/p>\n\n\n\n

Your coverage can (and should) start before your policy starts<\/strong><\/h3>\n\n\n\n

We\u2019ve explained the concept of \u2018claims-made\u2019 and \u2018run-off cover\u2019, but an equally important feature under PI is retroactive cover. Just as you may need to keep cover in place after you\u2019re no longer practising, it\u2019s also important to ensure your policy will cover you for claims that arise from advice given in the past (usually, from when you started practising).

This is why PI policies usually have a retroactive date. Preferably, the retroactive date would be the date you started practising to ensure any claims arising from a client you serviced previously can still be covered under your policy. However, not all insurance policies are created equal, some policies may default your retroactive date to the date the policy starts, which could leave you with a significant gap in cover.

It\u2019s also worth keeping in mind that for retroactive cover to be applicable, you must not have known about the claim or a circumstance that may lead to a claim.<\/p>\n\n\n\n

You might need to contact your broker before a claim is made<\/strong><\/h3>\n\n\n\n

If you need to make a claim, for most insurance policies, you simply need to contact your insurance broker or insurer at the time you\u2019re ready to make the claim. However, under Professional Indemnity, it is not enough to do this. You are required to notify your insurance broker as soon as you become aware of a claim\/allegation, or a circumstance that may lead to a claim.

Even a subtle warning sign such as a client mentioning they\u2019re not fully happy with the advice or service you\u2019ve provided; a verbal threat they will take legal action or make a complaint, and even correspondence from someone stating that they were not happy with the services you provided, should prompt you to contact your broker. If you do not notify your broker of a concern of possible legal action or circumstance that could lead to a claim, it could result in you being uninsured if a claim was to result at a later date.<\/p>\n\n\n\n

Importance of understanding your cover<\/strong><\/h3>\n\n\n\n

It\u2019s probably clear by now that when it comes to Professional Indemnity Insurance, there is more than meets the eye in terms of coverage. It\u2019s a good idea to take the time to understand the various features under PI, and be sure you have the level of protection you\u2019re comfortable with. Speaking to a broker who understands the risks of your industry in detail can also be a valuable exercise in making sure you\u2019ve ticked all the boxes regarding your PI cover.<\/p>\n\n\n\n

This article was contributed by Aon.<\/p>\n\n\n\n

You can find more information at: https:\/\/business-insurance.aon.com.au\/<\/p>\n","protected":false},"excerpt":{"rendered":"

Important features of Professional Indemnity Insurance You might already hold\u00a0Professional Indemnity Insurance\u00a0(PI), and renew your cover year after year without a second thought, but there\u2019s more to your PI cover than you might think. Because of the way Professional Indemnity policies operate, there are some aspects of the cover that are worth keeping in mind to ensure your policy is providing you with the protection you need.\u00a0 Your cover shouldn\u2019t end after you stop practising With most of your other insurances, the cover often isn\u2019t needed anymore after you no longer have the asset. For example, you might cancel your car insurance after you sellRead More →<\/a><\/p>\n","protected":false},"author":934,"featured_media":2926,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_mbp_gutenberg_autopost":false},"categories":[35],"tags":[],"_links":{"self":[{"href":"https:\/\/theonsitemanager.com.au\/news\/wp-json\/wp\/v2\/posts\/2924"}],"collection":[{"href":"https:\/\/theonsitemanager.com.au\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/theonsitemanager.com.au\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/theonsitemanager.com.au\/news\/wp-json\/wp\/v2\/users\/934"}],"replies":[{"embeddable":true,"href":"https:\/\/theonsitemanager.com.au\/news\/wp-json\/wp\/v2\/comments?post=2924"}],"version-history":[{"count":1,"href":"https:\/\/theonsitemanager.com.au\/news\/wp-json\/wp\/v2\/posts\/2924\/revisions"}],"predecessor-version":[{"id":2925,"href":"https:\/\/theonsitemanager.com.au\/news\/wp-json\/wp\/v2\/posts\/2924\/revisions\/2925"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/theonsitemanager.com.au\/news\/wp-json\/wp\/v2\/media\/2926"}],"wp:attachment":[{"href":"https:\/\/theonsitemanager.com.au\/news\/wp-json\/wp\/v2\/media?parent=2924"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/theonsitemanager.com.au\/news\/wp-json\/wp\/v2\/categories?post=2924"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/theonsitemanager.com.au\/news\/wp-json\/wp\/v2\/tags?post=2924"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}