Why Education and Training Services Need Professional Indemnity Insurance

Why Education and Training Services Need Professional Indemnity Insurance Thumbnail Image

The Education and Training industry has established itself as a key player in the Australian economy with is gross revenues forecasted to reach $136.7 billion by 2018 and the education of international students now confirmed as Australia’s third biggest export, generating revenues of approximately $21 billion in 2016-17. With such a large industry emerging not only are individuals requiring services provided by such organisations, but many are engaging the services of Education and Training Consultants to plan and advise on appropriate learning outcomes.

Due to the professional nature of their work providing advice and services to clients, Education and Training services are liable for any errors or omissions they can potentially make in the course of their work. As such, it is highly recommended that Education and Training Advisors have Professional Indemnity Insurance to provide financial protection against potential claims of negligence and malpractice regardless of their legitimacy.

Professional Indemnity Insurance, often referred to as professional liability insurance or PI insurance, is designed to protect the insured entity, its directors and staff from claims arising from an alleged breach of professional duty owed to a third party.

Professional Indemnity insurance protects policyholders in two ways:

  1. The policy responds to protect you against the legal costs of involved in defending yourself or businesses from claims made against you. The policy will respond even in the case where these claims are false. These defence costs can be significant even when defending yourself against a claim with no validity whatsoever.
  2. Professional Indemnity insurance will cover the payment of compensation owing to the third party in the event you are proven negligent.

In our litigious society the threat of claims and litigation is very real and can potentially lead to the collapse of businesses, no matter their size.  Simple mistakes made in the course of business or the potential threat of a false claim from a disgruntled client has the potential to significantly disrupt your business. Although it is easy to identify with a claim scenario where an error or omission has occurred, most businesses don’t consider the potential of claims with little or no merit being lodged against them for which significant defence costs can apply. Without the proper protection, such claims could result in business owners facing permanent damage to the reputation of their brand, the possibility of having to close their business or even having to liquidate personal assets such as a family home.


During the course of business it is possible to unintentionally omit information, breach confidentiality, give incorrect advice or make an error in your judgement which subsequently causes loss to your client. Such errors expose your business to potential claims for the compensation of damages.

Some key exposures faced by Education and Training services are:

  • Failing to understand or manage the learning or training needs of clients
  • Recommending inadequate education and training programs
  • Providing inadequate training
  • Incorrect assessments
  • Inappropriate evaluations of education and training programs
  • Breaches of Confidentiality
  • Failing to adhere to the training delivery requirements of the Australian Quality Training Framework (AQTF)

What Now?

Hopefully you know have a better understanding of what Professional Indemnity insurance means to you.

If you are an Education and Training Consultant with Public Liability and Professional Indemnity needs, Cerberos offers a comprehensive combined Public Liability and Professional Indemnity insurance package designed specifically for Education and Training Professionals. You can quote, bind, pay the premium and receive full policy documentation online within a few minutes. You can also pay in full or by monthly instalments. Get started today!

If you have any further questions or you would like assistance in assessing your Professional Indemnity Insurance needs please be sure to contact one of our Professional Indemnity experts.

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