What is a limited liability scheme?
A limited liability scheme is a scheme that has been approved by the Professional Standards Council in accordance with the Professional Standards Act (NSW) for the purpose of protecting the public and placing a cap on a complying member's professional liability.
At a federal level the applicable legislation is the Trade Practices Act.
The intention of the legislation is to place a cap on the amount of professional liability for members of participating occupational associations.
As stated on the Professional Standards Council website :-
'Cover of Excellence® schemes are a statutory innovation. They require occupational associations to improve their professional standards and protect consumers by implementing robust risk management strategies and adhering to professional indemnity insurance standards. It rewards such practices by limiting the occupational liability of members of occupational associations.'