Every Migration Agent understands that the process of providing advice and assistance to potential migrants is complex, and the stakes can be high. Migration Agents are entrusted with having the right knowledge to deal with each person’s unique case, and clients expect flawless service at every point. When things go wrong, tensions can run high. Professional Indemnity insurance could be the key to protecting you and your reputation from a potentially large financial claim, and a prolonged period of stress.
First, let’s be clear about its purpose: Professional Indemnity insurance provides financial protection against potential losses arising out of acts, errors and omissions from professional services and advice provided, including:
- Negligence in providing professional services
- Breach of duty of care
- Allegations of misrepresentation or of creating a misleading impression
- Breach of statutory provisions in various laws
- Incorrect or inadequate advice
- Errors on Visa applications
- Late lodgement of documentation
So, we’re talking about liability for services and advice provided. Effectively, this means that if a client engages a registered Migration Agent to assist them navigate the complex world of visa applications and something goes wrong, or is even perceived to have gone awry, the business could be faced with a financial claim equivalent to the client’s losses, as well as additional compensation.
The Australian Government takes these issues seriously and is the very reason why all Migration Agents must hold Professional Indemnity insurance for at least $250,000 to be eligible to provide migration consultation and agency services, alongside other strict requirements.
But why is it so important?
When it comes to insurance, severity trumps probability. Whilst the likelihood of a Migration Agent being sued for negligence or malpractice is low, the value of potential claims can be high with compensation stretching into the thousands. The consequences of mishandling a visa application could be dire, ranging from financial losses to reputational damage, and even the possibility of having your registration suspended. Professional Indemnity insurance for Migration Agents is there to protect all parties involved.
Another important factor here is the emotion inherent in people’s reasoning. Client’s that miss out on the opportunity to study, work or live in one of the most sought-after countries will most likely feel a great deal of frustration and resentment which could lead them to lash out, regardless of the service level provided. This is even more common when there is a genuine suggestion that professional standards were not maintained, or the existing client relationship is a contentious.
Need a real-life example?
A Migration Agent lodged a visa application on behalf of a client. Despite having previously lodged several successful applications on behalf of other clients in the same profession, the agent unknowingly lodged an incorrect assessment on this occasion. The client was then forced to depart Australia and re-apply for a new visa offshore, costing her thousands of dollars in airfares and other unnecessary travel expenses. She lodged a claim against the agent and was awarded $8,432 to cover the costs of the new visa application as well as the costs of flying in and out of Australia.
This is just one of many scenarios where a Migration Agent could be liable for considerable financial reparations. Even more concerning, however, would be the unqualifiable damage to their standing in the industry and the community at large.
Professional Indemnity insurance will keep your bottom line in check if things go wrong and protect your reputation from coming crashing down for all the wrong reasons.
Why BizCover?
BizCover is Australia’s no. 1 online business insurance service and is proud to be the official insurance partner of Migration Alliance. We believe that protecting your business should be a simple and hassle-free process, leaving you time to focus on your business.
Our easy to use platform allows you to get a quote and buy online instantly with your policy documents emailed directly to you.
As a member of Migration Alliance, we’ll give you an exclusive discount on top of our already low price. All you need to do is enter the code MABIZ001 at checkout or mention the code over the phone.