What is Professional Indemnity Insurance (PI), and why you should always consider it as part of your business plans.

Professional Indemnity Insurance serves as a vital business risk management tool. It shields you from legal costs, compensation, and lost income if you're found to have provided inadequate advice, design, or services—essentially protecting you from claims of professional negligence or mistakes leading to financial losses for your clients.

Who Requires This Coverage?

While PI insurance might not be legally mandated in most professions (unlike WIC Insurance), it proves invaluable across various industries, safeguarding against potential worst-case scenarios. While construction and design firms often come to mind, the need for PI insurance extends far beyond, including:

• Bookkeepers and company secretaries

• Real estate agencies and agents

• Media industry professionals such as broadcasters, graphic designers, and publishers

• Consultants across diverse sectors such as HR, IT, Banking, and Security

• Ancillary medical professionals like therapists, nutritionists, and pharmacists

• Health and wellness operators, travel agencies, and security guard companies

Illustrative Scenarios:

Scenario 1: In August 2002, Samsung Corporation detected a tilt in a building, sinking 3 to 39 mm due to soil settlement. Although seemingly minor, this tilt could have compromised the building's structural integrity, potentially leading to severe damage or cracks. Swift rectification efforts ensued, lasting two years and involving multiple companies. Had Samsung not been adequately covered by Professional Indemnity Insurance, the consequences could have been catastrophic.

Scenario 2: PI Insurance also proves critical in the medical field, addressing cases of negligence or malpractice. Whether it's a misdiagnosis leading to unnecessary surgery or surgical errors resulting in severe consequences, PI insurance provides essential coverage for legal expenses and potential compensations, ensuring professionals are protected in high-risk, high-investment industries.

Key Coverage Areas:

• Claims for civil liability arising from business conduct

• Defamation suits

• Accidental negligence

• Legal fees

Cost Considerations:

The cost of PI insurance varies depending on factors such as risk assessment, desired coverage, and chosen excess. Premiums can start as low as S$1,000.00 (excluding GST) per annum. Policy options include "aggregate policy" or "per claim policy," each offering distinct advantages depending on your needs.

How Can We Assist You?

As seasoned professionals in PI insurance, AWG is positioned to address your insurance needs comprehensively. Whether you require guidance on coverage options or wish to initiate a policy, feel free to reach out to us via message or by calling 6294 6688. Your peace of mind is our priority.