Professional Indemnity insurance (also known as PI insurance) is designed for businesses that provide professional advice or services to their customers. PI insurance is also a legal requirement for chartered accountants. But not all PI cover is the same.
How much cover a CA needs is determined by regulations, professional standards and guidelines, and there are specific obligations for Australian Certificate of Public Practice (CPP) holders under the Liability Capping Scheme. Although PI is a critical area, it’s not always easy to navigate for the busy CA.
Understanding the PI market
Insurance broker Aon has a deep understanding of the PI insurance marketplace. Aon has a long track record as a provider of broking services to chartered accountants and is now offering PI insurance to accountants online.
“With the economic disruptions, it might be a good time for accountants to review their PI insurance and make sure that they are adequately covered and their risk exposures are minimised,” says Aon’s Managing Director, Affinity Lisa Henderson. “If you’re an accountant who is not already insured through Aon we encourage you to get a quote and compare the cover benefits and price with your current provider.”
She adds that CA ANZ members who buy PI insurance online and take 12 months’ cover will receive an extra three months’ complimentary insurance.
An omnichannel approach
Aon has brokers who specialise in PI insurance for accountants and can provide assistance to CAs over email, phone and online in relation to PI policy for their practice.
“Ours is an omnichannel approach which combines the convenient option of online purchasing and the ability to access our specialist team,” says Henderson. “They have a deep understanding of the industry and can provide expert advice on the most appropriate cover. One CA ANZ member, for example, needed more relevant and tailored cover which included benefits not always delivered in the plain vanilla solutions purchased off the shelf.”
The policy included additional features, such as waiving any excess in the event of a successful legal defence and unlimited automatic re-instatements, so that if a claim amounted to maximum cover, the policy would automatically reinstate the cover value for any new claims.
Aon was able to place insurance cover with an insurer whose solution included benefits such as cover for contractor breaches, wrongful employment practices, and run-off cover for members who had left the profession. For this client, the result was more appropriate cover, at a more competitive price.
Fighting for the best outcome
Another advantage of arranging insurance through Aon is that, in the event of a claim, the broker will assist with the lodgement and provide customer support throughout the claims process. Aon has long-standing relationships with insurers and can draw on this experience for the benefit of its customers. By contrast, CAs who buy PI insurance directly from insurers have to manage all aspects of their own claims, and this can sometimes be a lengthy and complicated process.
“Making a claim can be time consuming and stressful, and it can be an advantage to have a broker on your side who can manage things on your behalf,” says Henderson. “We are in there fighting for the best outcome for our customers.
“It can be an advantage to have a broker on your side who can manage things on your behalf.”
Henderson says Aon’s goal is to make purchasing insurance for CAs easy to understand and manage, and to deliver competitive cover for a competitive price.
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© 2020 Aon Risk Services Australia Limited ABN 17 000 434 720 AFSL no. 241141 (Aon)
1. This offer is only available to new customers of Aon who purchases a Professional Indemnity policy before 4:00PM AEST 31st March 2021, subject to certain eligibility criteria, and in respect of the professional indemnity policy offered by Chubb Insurance Australia Limited (Chubb Insurance) as the insurer.
Professional Indemnity Insurance for members of Chartered Accountants Australia and New Zealand is arranged by Aon Risk Services Australia Limited ABN 17 000 434 720 AFSL 241141 (Aon) as agent for the insurer, Chubb Insurance, ABN 23 001 642 020 AFSL 239 687.If you purchase this insurance Aon will receive a commission that is a percentage of the premium. Please let us know if you would like any further information.
The information contained in this article 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 particular product is right for you, please consider your personal circumstances, as well as the relevant Product Disclosure Statement (if applicable) and full policy terms and conditions available from Aon on request. All representations in this article in relation to the insurance products we arrange are subject to the full terms and conditions of the relevant policy. Please contact us if you have any queries.