Insurance can be confusing.
This is especially true when you’re thinking about more abstract insurance that doesn’t involve tangible objects like your car or home.
At BMS we believe knowledge is power. So the more knowledge you have about insurance, the more peace of mind you’ll have about cover.
Let’s break it down.
Professional Indemnity (PI) Insurance protects you against allegations or claims of financial loss due to injury or damages that have resulted from a negligent act, error, omission, malpractice or breach of duty that has arisen out of your professional duty. PI can protect you by ensuring that your legal defence is coordinated and paid for if a claim is made against you. Your PI could also cover the cost of client compensation or damages.
In simpler terms? If while working within your scope of practice a claim is made against you relating to:
- acting in a negligent manner
- making a mistake
- excluding something you shouldn’t have, or
- not working to an expected level of professionalism
Your cover can assist you in managing the allegation or claim made against you. Cover can also assist with costs of patient damages or legal defence costs.
For the full list of cover inclusions provided by the Pilates Association Australia (PAA) Insurance member policy, read the Policy Wording via the website paa.bmsgroup.com
But what about the other details of Professional Indemnity Insurance?
When reading a Policy Wording you might find the below elements mentioned. Here is your cheat sheet to understanding what they mean.
Claims-made policy
This means the Policy only responds when a claim is made, if you have active cover. The cover you have at the time of the claim is the one that will respond when a claim is made, regardless of when the incident occurred. It’s therefore important to ensure you have a policy in place should you take a leave of absence. This will ensure you’re covered should a claim arise during this time. There are conditions to this type of cover, so please ensure you read your Policy Wording for full details.
Policy period
The time between the policy starting and ending.
Run-off cover
Run-off cover may respond to protect you for any past activities after you have ceased all professional services. This means cover could continue, even if a claim arises after you’ve permanently stopped working, retire or take a leave of absence. Be sure to review your Policy Wording to check the details.
Policy Wording
Your Policy Wording sets out the terms and conditions of the insurance contract, including any exclusions, limitations, deductibles, or coverage extensions that may apply. In the event of a claim, such terms and conditions may limit the amount payable or exclude coverage.
Retroactive cover
This refers to cover for services you provided before the policy start date. This may or may not be included in your policy. To check, refer to your Policy Wording.
Scope of practice
Everything you do in your profession is governed by a scope of practice. This refers to everything you’re qualified or registered to do while working.
Exclusion
Things that are not included as part of your policy.
For more information
paa.bmsgroup.com
1800 940 762
pilatesaa@bmsgroup.com
In arranging this insurance for our members PAA is acting as a distributor of BMS Risk Solutions Pty Ltd (BMS) AFSL 461594, ABN 45161187980. The insurance is issued by BMS under binder with Certain Underwriters at Lloyds. When acting under a binder BMS acts as agent for the insurer and not as your agent. This is general advice only and BMS has not considered whether it was suitable for your particular objectives, needs or financial situation. Please read the Policy Wording and Financial Services Guide before making a decision about purchasing this policy.
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