Professional Indemnity Insurance
Safeguarding professionals against claims of negligence
If your work is advice — whether you're an accountant, consultant, designer or engineer — a single mistake can lead to a claim. Professional indemnity protects you against the financial cost of alleged negligence or breach of duty. Cover limits typically range from $1 million to $20 million.
What is professional indemnity insurance?
Professional indemnity insurance (PI) safeguards you and your business against claims of alleged negligence or breach of duty while providing professional advice or services — including errors, omissions or acts that may have occurred. It's often held alongside public liability insurance.
An example — public liability
Your delivery van rolls back and damages a bakery's window and products because of a faulty brake. The bakery owner can claim against your company — and the damage is covered by public liability insurance.
An example — professional indemnity
You make a mistake preparing a client's tax deductions and they're fined by the ATO. They can take legal action against you — and professional indemnity covers the damage caused by your mistake.
What does professional indemnity cover?
Details differ between policies, but most PI policies cover the costs that flow from a claim.
Typically covered
- Expenses from disciplinary proceedings
- Legal fees imposed against you
- Legal costs of defending or responding to a claim
- Compensation for a claim, including court-awarded damages
- Costs of investigating the case
Exclusions vary by insurer — your policy schedule will specify them.
Why should you get a PI policy?
People sue for any mistake — real or imagined. PI protects you against claims whether the loss is actual or alleged. Honest mistakes happen, and the right cover is about sizing your protection to your practice and turnover, so you're not paying for cover you'll never use.
Related cover
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Talk to a PI specialist
Running without professional indemnity is risky for you and your company. Arrange a consultation and we'll answer your questions.
General advice only. Consider the relevant PDS & TMD before acquiring any product.