Keen to hear your thoughts on whether I need personal indemnity insurance.
I’ve been working as a sole trader contractor with my own ABN for a few years. I’ve only been employed by one company and I invoice them directly. My role is Product Owner in the digital/tech space. Although I’m not writing code, I’m responsible for delivering a roadmap and for a website area.
Should I have personal indemnity insurance or any other insurance?
I am assuming you meant 'professional' indemnity insurance.
Its up to you.
What is the chances that you stuff up?
What is the likelihood your clients will initiate litigation if you do stuff up?
What is the cost of the insurance? And will it help you sleep better at night?
Do some more research and determine if you think it is worthwhile for your business.
https://www.cgu.com.au/business/professional-indemnity
https://www.nrma.com.au/business-insurance/professional-inde…
https://www.isureonline.com.au/professional-indemnity-insura…
Yes, yes you should.
Unless as part of your contract the client has indemnified you/you're acting as a sole trader under their insurance (say government for example).
In the world of IT it would be more if there's a case for lost profits then your client may be able to come after you. Better for you to have an insurer if they do.
It's cheap when you need it…
OP, I run an insurance broking business, to be clear, I am not touting for business, and for all legal purposes this is not advice. Its just that we see a lot of people get screwed over in these situations.
You should ask that your employer confirm in writing that you are indemnified under their professional indemnity insurance policy, and ensure that there is nothing contradictory in your employment contract. They really shouldn't have an issue confirming this (or getting their broker to confirm it) as its a pretty regular request and its not 'confidential' or any other such rubbish. If they are easy to deal with, I would also ask for a copy of the policy wording (again nothing commercial in confidence as the wording is generic, the policy schedule would be confidential), and once they send it to you, look for a clause generally titled something like sub contractors, or failing that look for the definition of 'insured' or the definition of 'employee'. You will get clarity as to how you are covered. Some policies have blnket cover for subervised contrsctors, others have limitations such as you need to work at least 75% of the time for them to be covered etc. Just so you are aware, any cover you have, is only for the work you do for them at their request.
If they say you are not covered, then you definitely need it as, even though you may not be responsible for negligence etc, you may be named in any suit or be forced to be joined in any suit against your employer. There are online options, you can speak to a broker, or go direct to the insurer. Its probably going to be slightly more expensive to go through an insurance broker compared to online, however you will get the benefit of someone guiding you through the disclosure process to ensure whatever policy you buy is fit for purpose, and in the event of a claim, they assist with the claim.
One final point, even if you are indemnified under their policy, it would be wise to purchase a cheap little public liability policy ($5/10m should suffice) as you are a contractor, because say if you were responsible for the injury of one of the employees you work with, or you inadvertedly damaged property, you wouldnt have the same legal protections against the company and its staff that you would have as an employee.
My answer is longer than your question, but its never simple.
:)
Even if they do
Are you going to make a mistake?
Do you have any assets?
If ‘no’ to both then ‘no’ (to professional indemnity)