What is Professional Indemnity Insurance?

Professional indemnity insurance is for professionals who provide advice or a service to customers during the course of their work. If you’re a builder or tradesperson, Professional Indemnity Insurance can help protect you and your business against claims of negligence or breach of duty arising from an act, error or omission in the delivery of your professional services.

Key Highlights

If a customer claims that your business made a mistake that caused them injury or financial loss, they can take legal action against you. With Professional Indemnity Insurance cover, you can defend your business against the claim and prevent financial loss.

  • Helps safeguard your business against claims made against it
  • Can cover the cost of your legal defence and damages you have to pay
  • Is invaluable for any building industry professional who provides advice or a service.
 

Why might I need Home Professional Indemnity Insurance?

Having to defend a claim of malpractice, professional misconduct or breach of duty can cost you and your business significant time and money. You could be held responsible not just for your own actions, but also those of your partners, employees or volunteers.

If you’re a builder or a tradie and you have dealings with customers, Professional Indemnity Insurance can protect you against claims brought against you. Not only can Professional Indemnity Insurance cover legal defence costs and expenses accrued while defending a claim, the policy may cover compensation amounts payable to your customer if rectification works are required.

What are the cover benefits of Professional Indemnity Insurance?

Choice of cover limits

Cover available from $1m to $10m to help protect against legal costs and claims for damages to third parties arising from an act, omission or breach of professional duty in the course of your business

Vicarious Liability Cover

If you engage consultants, contractors, subcontractors or agents, we can ensure you're covered if they make any errors or omissions.

Claims investigation costs

Includes cover for the costs of investigating, defending and settling of claims made against your business

Retroactive and run-off cover

The Professional Indemnity HIA Insurance Services can arrange for you can cover claims that are alleged to have occur before you held your insurance policy. It can also extend to provide cover after you have retired or switched professions, in which case the policy has lapsed.

Related Products
Construction Works Insurance

Protect your assets against loss or damage by taking out Construction Works Insurance.

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Home Warranty Insurance

Mandatory insurance (with some exceptions) for residential building projects over a certain value.

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Why HIA Insurance Services?

HIA Insurance Services (HIAIS) combines the construction industry expertise of the Housing Industry Association (HIA) with the risk and insurance knowledge of Aon to provide products and advice that are specific to the residential construction industry.

We understand the unique risk exposures of professionals in the residential building sector, including risks faced by tradies, developers, building inspectors, draftspeople, project managers and architects.

As one of the largest and most experienced insurance providers in the country, we can offer policies tailored for risks commonly found in the construction sector, as well as speedy insurance claims processes. Our specialist brokers will work alongside you to understand your insurance needs and provide you with appropriate levels of cover. Plus, our expert claims team is here to help you manage even complex insurance claims.

Frequently Asked Questions
As a specialist in construction insurance, your HIA Insurance Services broker will be able to work with you, analysing your business’ risk profile and balance sheet in order to help you understand an appropriate level of cover for your business’ circumstances. Speak to a broker by calling us on 1800 762 878.
Professional fees can be identified by taking the overall turnover of your business and determining the portion of your turnover that is derived from professional activities. This will typically vary depending on size of the business, resources and expenses allocated by the business to perform these professional activities. 
Professional Indemnity Insurance is designed for any professionals in the construction industry who provide some sort of professional service or advice to their clients. These could include: 
  • Tradies 
  • Developers 
  • Building inspectors 
  • Draftspeople 
  • Project managers 
  • Architects 
  • Surveyors 
  • Design Professionals 

Professional Indemnity Insurance for the Building and Construction Industry is arranged by HIAIS and underwritten by QBE Insurance (ABN 78 003 191 035, AFSL 239545). If you purchase this insurance, HIAIS will receive a commission that is a percentage of the premium. Further information can be found in HIAIS’ FSG or provided upon request. The information contained on this webpage is general in nature and should not be relied on as advice (personal or otherwise) because your personal needs, objectives and financial situation have not been considered. Before deciding whether a product is right for you, please consider the relevant Product Disclosure Statement (if applicable) and full policy terms and conditions available from HIAIS on request. All representations on this webpage in relation to the insurance products HIAIS arrange are subject to the full terms and conditions of the relevant policy. Please contact HIAIS if you have any queries.