Professional Indemnity Insurance

In the aftermath of the Royal Commission into the banking and financial services industry, there was an increase in the frequency and severity of claims against financial planning firms. In response, Australia’s insurance market entered a ‘hard market’ phase of retracted and reduced available capacity. Now that the royal commission hangover is dissipating, market capacity is back on the rise. Ensure that you are meeting your legal obligations by partnering with a trusted advisor who understands the space and can direct you to insurers who can provide the right policy for you.

Your legal obligation

Australian Financial Services License (AFSL) Professional Indemnity Insurance provides protection to financial services businesses in Australia. It is a legal requirement that all financial services businesses with an AFSL with the authority to provide services to retail clients, hold professional indemnity insurance to meet regulatory obligations.

As per the ASIC RG126 Regulatory Guide, a PI insurance policy must have a limit of at least $2 million for any one claim and all in the aggregate for licensees with total revenue from financial services provided to retail clients of $2m or less. For licensees with total revenue from financial services provided to retail clients greater than $2m, minimum cover should be approximately equal to actual or expected revenue from financial services provided to retail clients.

How we help you

AFSL Professional Indemnity Insurance can offer you coverage for legal costs and damages arising from a range of risks, such as claims of professional negligence, claims of breach of duty, defamation claims and breach of contract.

Your protection is only as valid as the policy you hold, so it’s important to consult with experts in the field to help you understand your business requirements and advise on the most appropriate insurance for you.

At Risk Advisory Hub our team will work with you to:

Assess potential liability
Assess the amount of cover you have or will need
Determine if that scope of cover complies with ASIC RG126.

Why is AFSL Professional Indemnity Insurance so important?

AFSL Professional Indemnity Insurance is specifically for the protection of financial services business in Australia. Because financial services businesses are entrusted to provide advice and make decisions that significantly impact a client’s financial wellbeing it is important to have an insurance policy that adequately covers you for risks such as errors, omissions, professional negligence and breaches.

Get in touch

Please get in touch to discuss your business and commercial insurance requirements or for a free, no obligation quote.

Phone

+61 420 916 929

Location

31/100 Miller Street, North Sydney NSW 2060

Email

arao@riskadvisoryhub.com

Open Hours

Mon - Fri: 8:30am - 5:00pm