Professional Indemnity (PI) Insurance is an important part of any business risk management strategy. No longer is PI only required by professionals such as lawyers, accountants, and architects but it is a legal requirement which applies to all Strata Managers.
Professional Indemnity Insurance protects any person or entity who provides advice, especially for a fee, against claims of negligence made against them. If a loss can be attributed to a failure to uphold professional standards by any employee, a Strata Manager risks being sued for a breach of duty.
A breach of duty may be an error in judgement, an oversight or a simple omission. A claimant’s loss may be material, financial or physical. Professional Indemnity Insurance covers the costs and expenses of defending a legal claim, as well as any damages payable.
These cases are often complex and can take years to settle. The legal costs and damages can be crippling for you and your business.
An employee not acting on the request of an Owners Corporation committee or failing to ensure the maintenance of common property areas may result in a breach and your business exposed to a PI claim. It’s that simple!
According to Whitbread Insurance Brokers’ PI specialist, Holger Schnabel, “Professional Indemnity Insurance is a complex area of insurance and not just any PI policy will protect you from the risks.”
Whitbread understand the risks faced by Strata Managers and their employees in their day to day business and have sourced a Professional Indemnity policy to suit business owners’ needs.
”We can provide professional advice on the level of cover required and explain some of the intricacies such as ‘claims made’, ‘known circumstance’, ‘retroactive date’, ‘automatic reinstatement’, ‘bodily injury’ and ‘property damage’ cover”, he said.
“If an OC manager has the misfortune to make a claim, our dedicated claims department will ensure that the claim is managed as efficiently as possible, enabling them to focus on their business.”
The Owners Corporation Act of 2007 requires an Owners Corporation Manager to carry a minimum Professional Indemnity Insurance cover of $1,500,000. Whitbread has negotiated highly competitive rates on behalf of OCV members with Chubb Insurance Company of Australia Ltd.
If you’d like to speak with Holger further about Professional Indemnity Insurance please contact our office on 1300 424 627.
This Whitbread insight article is not intended to be personal advice and you should not rely on it as a substitute for any form of personal advice. Please contact Whitbread Associates Pty Ltd ABN 69 005 490 228 Licence Number: 229092 trading as Whitbread Insurance Brokers for further information or refer to our website.