Professional Indemnity Insurance for Sole Traders & Contractors

Professional indemnity insurance for trade contractors isn’t usually something that most tradies need however, tradies are no longer just building a project and finishing the job. Designs, advice, compliance audits and certification certifications are now regularly being provided. PI insurance is designed to cover the financial loss caused due to the negligence of your professional services. Common examples of tradies that require PI insurance: 

• Professional indemnity insurance for builders will typically cover builders that are engaged in design and construct projects.
• Professional indemnity insurance for plumbers will typically provide you cover for things like water compliance certificates, gas compliance certificates and most other errors or omissions that triggers a financial loss. 

The most common claim made under a professional indemnity policy is to cover defence costs for allegations made against your business. In reality, an allegation can be made against a business regardless whether it’s true or not. Unfortunately, as a business owner this costs you not only time, but usually also comes at a significant cost. Your PI insurance will usually provide cover for the costs associated with defending these allegations.

Time is money and every day that your business isn’t generating an income can be costly to your business. A professional indemnity policy will usually provide you with reimbursement for court attendance costs up to the sub-limit specified in the policy.

Most trade contractors rely heavily on sub-contracting companies to assist them in their business. If an allegation is made against you in regards to work that was completed by a subbie on your behalf then your PI insurance will usually respond to the claim on your behalf.