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 our resident PI specialist, Andrew Saville, “Professional Indemnity Insurance is a complex area of insurance and not just any PI policy will protect you from the risks.”
Resolute understand the risks faced by Strata Managers and their employees in their day to day business and offer a tailored Professional Indemnity policy to suit strata business owners’ needs.
“We 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. Resolute can negotiate highly competitive rates through a variety of insurers to ensure your strata firm has the necessary protection to secure your future.
If you’d like further information about Professional Indemnity Insurance please contact our office on 1300 668 033.