Protecting your brand, assets and reputation is paramount.

What is Professional Indemnity ?

Any one can make a mistake – but if your business is found liable for negligence, the cost can be financially devastating. Not only can it lead to expensive law suit, but your business hard earned reputation may be damaged as a result.

Thats why professional indemnity insurance matters – help protecting your assets and brand if your advice or services cause a client to take legal action against you.

Who Should Consider it ?

Professional Indemnity insurance is mandatory in some industries. such as medicine, accounting, law and financial advisers – with the requirements differing from state to state.

But even in cases where its not required by law, its recommended for anyone who is providing professional services or advice in exchange for a fee – like graphic designers, IT consultants and more. And regardless of your legal obligation, its often a customer requirement that you have this cover in place

Professional indemnity insurance for your business if the likelihood of legal action is high

Australian Government .


In 2014 alone, professional indemnity and public liability claims increased by 27.7 %
( ”Claims up ,premium down for PI and PL”2015)


$ 1,362 million of gross premium during the 2016 underwriting year
(APRA, National Claims policy database 2017)


701,000 PI risk written in 2016 underwriting year.
(APRA, National Claims policy database 2017)

What Can it Cover?

As wide – ranging solution, professional indemnity cover may include anything from accidents to errors and omissions.
Depending on your policy, professional indemnity insurance can cover the following

Type of Cover

Potential Benefits

Civil Liability

Civil Liability to a third party arising out of the conduct of their professional business

Inquiry Costs

The cost of defending an inquiry by regulatory body into the professional conduct of the insured

Defence Costs

The cost involved ind defending a claim triggered by the policy

Fidelity Cover

Direct financial loss of the business caused by the dishonest or fraudulent conduct of an employee which is first discovered during the period of insurance

Advancement of costs and expenses

Additional costs and expenses incurred during a claim

What Usually Isn't Covered?

Exclusions, the excess you need to pay and limits of liability can vary greatly depending on your insurer. Polices generally wont include cover for

  • Contractual or Commercial Liabilities
  • Liability which results from fraud and dishonestly
  • Pollution
  • Depending on your occupation ,Third party bodily injury / Property Damage
  • Unpaid fees

Case study

Michael is an engineer who designs the supporting foundations of residential property. He makes an error with the site calculations – which leads to the slab cracking and damage to the property of the owner.

His company is liable for this loss, which could be anywhere between $150,000 up to the full value of the house.

But because Michael has professional indemnity insurance, he’s covered for this amount – as well as any legal expenses if the matter goes to court.

This information is provided to assist you in the understanding the terms, ,implications and common considerations in professional indemnity insurance. It does not constitute advice, and is not complete, so please discuss with us your requirements so we can match the product that will suit your circumstances.

Get in Touch Today to see how we can help.