Professional indemnity insurance
Anyone can make a mistake, but if your business is found liable for negligence, the costs can be financially devastating. A lawsuit can be expensive, and your hard-earned reputation may suffer too.
Professional indemnity insurance helps protect your assets and brand if your advice or services cause a client to take legal action. We arrange it for professionals Australia-wide.
What it can cover
Professional indemnity cover can range from accidents to errors and omissions. Depending on your policy, it can cover:
Civil liability
Civil liability to a third party arising out of the conduct of your professional business.
Inquiry costs
The cost of defending an inquiry by a regulatory body into your professional conduct.
Defence costs
The costs of defending a claim covered by the policy.
Fidelity cover
Direct financial loss caused by the dishonest or fraudulent conduct of an employee, first discovered during the period of insurance.
Advancement of costs
Additional costs and expenses incurred during a claim.
Who should consider it?
Professional indemnity insurance is mandatory in some industries, such as medicine, accounting, law and financial advice, with requirements that can differ between states.
Even where it is not required by law, it is recommended for anyone providing professional services or advice for a fee, such as graphic designers, IT consultants and more. It is often a client requirement.
What usually is not covered?
Exclusions, the excess and limits of liability vary by insurer. Policies generally will not cover:
- Contractual or commercial liabilities
- Liabilities resulting from fraud and dishonesty
- Pollution
- Unpaid fees
A real-world example
One calculation error can lead to a claim worth far more than the original fee.
Michael, an engineer
Michael is an engineer who designs the supporting foundations of a residential property. He makes an error with the site calculations, which leads to the slab cracking and damage to the owner's property. His company is liable for the loss, which could be anywhere from $150,000 up to the full value of the house.
Because Michael has professional indemnity insurance, he is covered for this amount, as well as legal expenses if the matter goes to court.
How we work with you
Independent broking, Australia-wide, with one point of contact.
- We learn how your business runs: what you do, turnover, staff, premises and contracts.
- We compare cover across a range of insurers and explain the key inclusions, exclusions and limits in plain English.
- We help with certificates of currency for landlords, leases and contracts.
- We support you at renewal, when your business changes, and through the claims process.
Frequently asked questions
What does claims-made mean?
Most professional indemnity is written on a claims-made basis. The policy that responds is the one in force when the claim is first made and notified, not when the work was done, so keeping continuous cover matters.
What is retroactive cover?
The retroactive date sets how far back past work is covered. Keeping it unchanged when you switch insurers helps avoid gaps for earlier work.
Do I need run-off cover when I retire or close?
Often, yes. A claim about past work can arrive years later. Run-off cover protects that work after you stop trading, and some professional bodies require it.
Do contractors and freelancers need their own PI?
Many clients and recruitment agencies require contractors to hold their own PI with a minimum limit, as you are generally not covered by the client's policy.
Is PI compulsory for my profession?
It is mandatory for some professions, such as accountants, financial advisers, lawyers and many health practitioners, through their licence or professional body. For others it is often a contract requirement.
Does PI cover me for work done overseas?
It depends on the policy. Many PI policies restrict cover to work performed in, or claims brought in, Australia. Tell us about any overseas clients so we can check.
Talk to us about your cover
We will review the services you provide, your contracts and your current cover and talk through your options. Call us, email us or request a callback. We service businesses Australia-wide.
Get in touch
- Phone
- (03) 9078 6473
- info@mminsure.com.au
- Hours
- 9:00am to 5:30pm, Monday to Friday
Find out more
Every business is different - which means you need an insurance solution that is tailored for you. For more information, contact us today.
Contact us