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Professional indemnity insurance
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2011-12 Aon PII Renewals
Aon Risk Solutions is the APS-endorsed broker for professional indemnity insurance (PII) which combines malpractice, public and products liability under the one policy. This cover satisfies the requirements of The Australian Health Workforce Ministerial Council and The Psychology Board of Australia. Further, it provides extensive coverage to compensate for Inquiry Costs associated with complaints heard by the registration boards (which currently forms approximately 90 per cent of claims). APS members are offered Aon’s PII policy at a considerably reduced premium - a benefit that saves them an amount greater than their annual APS subscription fee. |
2011-12 Professional Indemnity insurance cover
To find out more about this cover, and to apply please visit Aon’s website:
APS-endorsed PII broker: Aon Risk Solutions
Obtaining professional indemnity insurance is an important way of managing your professional risks.
As a key member benefit, the Australian Psychological Society (APS) offers in excess of 15 years experience in negotiating with various insurance brokers to develop a professional indemnity insurance product suited to the professional risks of their members.
When selecting a preferred provider we have considered selection criteria related to the following areas:
- Insurance product - extent of insurance coverage, premium level;
- Working relationship - capacity of the insurance company to work collaboratively with the APS towards better risk management practices by psychologists, and advocate for members where necessary;
- Knowledge and experience - depth of understanding of the psychology field, and related professional indemnity insurance matters;
- Service delivery - staffing levels to process high volumes of applications, and ability to deal effectively with enquiries;
The current insurance broker endorsed by the APS is Aon Risk Solutions which administers a professional indemnity insurance policy underwritten by CGU Insurance.
Key aspects of any policy you may consider when taking out professional indemnity insurance are:
Level of cover for Inquiry Costs
The most common type of insurance claim for a psychologist is a hearing at a Psychology Registration Board. For insurers, these costs are referred to as Inquiry Costs, which has a specific limit set in the policy different from the Limit of Indemnity.
The Aon policy has a limit of $1,000,000. Many other professional indemnity insurance policies may have significantly lower limits.
Limit of Indemnity
The Limit of Indemnity of your policy ($2 million, $5 million, $10 million, or $20 million) generally refers to costs incurred when someone sues you for damages, which occurs in the civil courts.
Legal advice relating to your psychological work
For those insured with the Aon policy there is a free legal advice hotline which is staffed by leading law firms across Australia.
Run-off cover - if you close your practice will you still be covered for claims made in the future?
The Aon policy offers free run-off cover which means that after retirement you do not have to keep taking out insurance each year, and you will still remain insured for subsequent claims, as long as you do not return to work as a psychologist.
The same applies to members going on maternity leave. Though once they recommence work as a psychologist, they will need to take out a new policy.
If you are about to retire or cease working as a psychologist, and you wish to retain professional indemnity insurance cover, all you need to do is notify Aon of your changed circumstances, and you will be placed on the run-off cover list.
You will not have to pay any further insurance premiums. You are reminded, however, that if you recommence work as a psychologist, you will need to take out a new policy.
Contact Aon
Ph: 1800 805 191
Fax: (03) 9211 3510
Email: psych@aon.com.au
