Training Professionals and Consultants FAQ


 

What is Professional Indemnity Insurance?

Professional Indemnity (PI) is insurance that provides you with financial protection in relation to claims made against you for errors, negligence or omissions that you might make as a training professional that result in third party damages.

 

Why should professional trainers buy insurance?

When providing training and consulting services you face a variety of risks. These risks fall into two categories, Public Liability and Professional Indemnity.

While there is no legal requirement to have either insurance in place, contracting companies often require consultants to provide evidence that they have insurance in place for both risks. Being proactive and making sure you’re covered will ensure you won’t have to worry about getting your insurance in place should you be asked to provide evidence.

What does this mean in practice for training professionals and consultants?

Common claims against training professionals include, however are not limited to, the following;

  • Negligence arising from a Breach of Professional Duty due to an act, error or omission (For example documentation errors)
  • Verification mistakes
  • Failing to protect clients’ property or data and/or misusing it
  • Misrepresenting products / services or wrongful and inadequate advice
  • Theft and damages
  • Allegations of poor behavior or ethics
  • Unintentional breach of contract
  • Exposing proprietary or confident company information

Having proper insurance helps protect you against scenarios like the above, giving you peace of mind to continue working with confidence.

 

What is Public Liability for training professionals?

Whenever you are dealing with people there are always public liability exposures, irrespective of how carefully you operate or conduct yourself. There is always the risk present that you might inadvertently cause injury or loss to others. Public Liability Insurance helps protect you against these types of risks.

 

What are some situations that could cause a Public Liability claim?

To help understand how Public Liability claims could affect you as a professional trainer, here’s two scenarios. Please note, these scenarios are not exhaustive or limited to situations that you may or may not experience.

Example 1:

A consultant contracted to provide training to a company plugs in their laptop to assist with a presentation, the lead is not securely fixed and results in a trip hazard. An employee of the contracting company subsequently falls and is injured. The employee of the contracting company might well lodge a worker’s compensation claim, which could very well result in the company's workers compensation insurer seeking a contribution from the training consultant, due to their negligence in causing the claim. There is, additionally, the potential for the employee and/or the contracting company to directly sue the consultant.

Example 2:

While conducting a training workshop at a third-party office, a trainer knocks over their glass of water. The spilt water shorts the companies’ projector and causes damage to the housing and wiring system. A very easy scenario to envisage, and one which could result in a public liability claim being made against the trainer for damages.

These scenarios are situations that any professional training consultant might be exposed to and could quickly lead to financial loss if the correct insurance protection was not in place.

 

How can I manage and minimise my risks

Understanding the risks involved in your business and profession can help you mitigate the risk of an incident, and therefore a claim. Our risk materials website RiskHQ provides education around the common risks involved with operating as a professional and/or business, and how to avoid common incidents that could result in a claim.


 

How do I get a certificate of currency for my contract employer?

You can obtain your quote and purchase your cover on-line, or speak to one of our customer service team. Once insured you will be provided with access to the Guild Policy Hub. This will then enable you to obtain a certificate of currency whenever you need one, instantly. Whenever a client or prospective client requests that you provide them with your insurance details, you can do so hassle free.

For more information on certificate of currency visit this page