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Professional Indemnity Insurance for Australian Businesses
PI insurance for the advice and services you get paid for.
Professional indemnity insurance can help protect your business when a client alleges that your advice or professional services caused them financial loss. VIM Cover compares PI insurance from leading Australian insurers and underwriting agencies, helps you assess an appropriate limit, checks your retroactive cover and provides proof of cover when a client requests it. One broker, all the way.
- Quotes from leading Australian insurance companies
- Cover for sole traders to large firms
- Help with limits, retroactive cover and run-off options
- Claims support from your own broker
We help you make sure:
- Your limit is in line with your clients and licence requirements
- Your retroactive cover is checked when renewing or changing insurers
- Someone who knows your policy is there when a claim lands
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Our Insurers
Just a few of the leading Australian insurers and underwriting agencies we work with.
The COVER
What is professional indemnity insurance?
Professional indemnity insurance can respond when a client alleges that your advice or professional services caused them financial loss. Depending on the policy and circumstances, it may help pay legal defence costs and covered compensation or settlements, up to the applicable limit.
You do not have to be found liable for a claim to involve significant defence costs. PI insurance can help meet those costs where the allegation falls within the policy, although an excess, exclusions and other conditions may apply.
It goes by a few names. PI insurance, PII, prof indemnity and professional liability insurance are all synonymous. Part of it is sometimes referred to as errors and omissions (E&O) coverage, and health professionals may recognise it as malpractice insurance.
You will also find individuals looking for “personal indemnity insurance”. That’s a common mix-up. They almost always require professional indemnity insurance, which protects you and your business for the work you do for clients.
Professional indemnity insurance at a glance
| What is it? | Insurance that can help cover legal defence costs and compensation arising from covered claims alleging negligence, errors, omissions or breaches of professional duty. |
|---|---|
| Who may need it? | Businesses and individuals providing advice, designs, expertise or professional services, including consultants, accountants, health professionals, IT professionals, designers and engineers. |
| What can it cover? | Depending on the policy, legal defence costs, compensation and insurer-approved settlements arising from covered professional-services claims. |
| Is it compulsory? | It is compulsory for some professions and licence holders. Others may need it under client contracts or industry requirements. |
| How much cover do I need? | Consider any regulatory minimum, contractual requirements, the scale of your work, potential client losses and how defence costs are treated. |
Do you need it?
Is professional indemnity insurance compulsory in Australia?
There is no law that states that all businesses must have PI. For many occupations, however, it is a requirement for your licence or registration. For many more, your clients make it compulsory by writing it into the contract. Here are some common examples:
| Profession | Who sets the rule | What it means for you |
|---|---|---|
| Registered tax and BAS agents | Tax Practitioners Board | You need to have PI that is compliant with TPB requirements to remain registered. Letting it lapse violates the Code of Professional Conduct. |
| Registered health practitioners | Ahpra and the National Boards | Registered health practitioners must not practise unless appropriate professional indemnity insurance arrangements are in force. Employer or other indemnity arrangements may satisfy the requirement, but practitioners remain responsible for ensuring that all aspects of their practice are covered. |
| AFS licensees providing financial services to retail clients | ASIC, RG 126 | Relevant AFS licensees must maintain adequate compensation arrangements, usually through PI insurance. ASIC considers at least $2 million per claim and in aggregate appropriate where revenue from financial services provided to retail clients is $2 million or less. Higher-revenue licensees generally require cover approximately equal to that revenue, capped at $20 million. |
| Mortgage and finance brokers | ASIC, RG 210 | Non-exempt Australian credit licensees undertaking broking or other non-lending credit activities generally must hold adequate PI insurance. ASIC's guidance sets a minimum of $2 million per claim and in aggregate. Brokers operating as credit representatives may instead be covered through their licensee's arrangements. |
| Building certifiers and some QBCC licence classes | QBCC | Private building certifiers and certain other QBCC licence classes must hold compliant PI insurance. Private certifiers require a minimum limit of $1 million for any one claim and in total during the policy period, together with other prescribed policy features. |
| Registered migration agents | OMARA | PI is a condition of registration. |
| Queensland solicitors | Queensland Law Society | Queensland law practices must participate in the compulsory professional indemnity scheme administered by the Queensland Law Society, with cover provided through Lexon Insurance. |
| Engineers, architects and building designers | Your state registration board | Registration and insurance requirements vary between professions, states and territories. PI may also be required under client contracts or professional association rules. |
Requirements depend on your occupation, location and activities. Review the conditions that apply to your business or discuss the insurance requirements in your contract, licence or permit with us.
What's Included
What does professional indemnity insurance cover?
Cover varies between insurers and occupations, but a PI policy may cover claims arising from:
Negligence, errors and omissions
Errors in your advice or work, or something you missed doing.eath of someone who is not an employee.
Breach of professional duty
Falling short of the standard a client can expect from someone in your line of work.
Failure to maintain confidentiality or privacy
Some policies cover civil liability arising from accidental disclosure of a client’s personal or commercial information. Cyber response costs and other first-party losses may require cyber insurance.
Intellectual property infringement
Some policies cover unintentional infringement of specified intellectual property rights. Patents, trade secrets and other types of intellectual property may be restricted or excluded.
Defamation
Someone alleges that you wrote or said something that hurt their reputation.
Lost or damaged documents
Claims for injury or property damage resulting from products your business manufactured, sold, supplied, installed or repaired.
Legal defence and investigation costs
Legal and expert costs incurred with the insurer’s consent in defending a covered claim, subject to the policy’s treatment of defence costs, excess and limit.
Reputation repair
Some policies cover PR assistance to restore your reputation following a claim.
Cover is subject to the policy wording, schedule, endorsements, exclusions, excess and limit. We will provide or direct you to the relevant documents for each quote.
What's not covered?
PI is for your work in your profession. It doesn’t cover everything. Common exclusions include:
Claims, complaints or circumstances known prior to the start of the policy.
Policies generally exclude indemnity for deliberate, fraudulent, criminal or dishonest conduct. Some policies may protect innocent insured parties or provide defence costs until the conduct is established.
Claims that result from the failure of your business.
These claims are commonly handled under public liability insurance. However, some PI policies cover injury or property damage arising from professional services, particularly in medical, engineering, design and construction occupations.
Promises beyond the law
Liability you take on in a contract that goes further than you’d normally be liable for. A must read before you sign the next contract.
Fines, penalties and employee injuries
Fines, penalties and punitive damages are commonly excluded or covered only where legally insurable. Workplace injuries are generally dealt with under the applicable workers’ compensation arrangements.
Before purchasing, review the quote, policy wording, schedule and endorsements. Where applicable, also review the Product Disclosure Statement and Target Market Determination. We will provide or direct you to the relevant documents for each quote.
ADDITIONAL INFORMATION
Claims-made cover, retroactive dates and run-off explained
This is one of the most important parts of professional indemnity insurance to understand.
PI usually works on a claims-made and notified basis
Most PI policies operate on a claims-made and notified basis. This generally means the policy in force when a claim is first made against you and notified to the insurer is the relevant policy, provided the underlying work falls within the retroactive cover and all other policy terms are met.
If a client makes a claim in 2027 concerning work completed in 2024, the policy in force in 2027 may respond. This will depend on matters including the retroactive date, any known-circumstances or prior-notification exclusions and compliance with the notification requirements.
Your retroactive date matters
A retroactive date determines how far back the policy can cover work performed before the current policy period. Some policies provide unlimited retroactive cover, while others specify a date.
Keeping continuous insurance helps protect your prior-work position, but continuity should never be assumed. The retroactive date and prior-work cover must be checked at each renewal and whenever you change insurers.
Tell us early
Notify VIM as soon as you become aware of a claim, complaint or circumstance that might lead to a claim. Do not wait for formal legal proceedings.
Under section 40(3) of the Insurance Contracts Act 1984, an insurer may remain liable for a later claim where facts that might give rise to that claim were notified in writing as soon as reasonably practicable after becoming known and before the policy expired. The policy terms and circumstances still matter, so early and complete notification is important.
Run-off cover for when you stop
Clients may still make claims after you retire, sell the business or cease trading. Run-off cover can protect against claims made after trading stops for work completed beforehand, subject to the run-off policy’s terms and retroactive cover. The appropriate period depends on your profession, contracts, regulatory requirements and potential limitation periods.
Whats the difference?
Professional indemnity vs public liability insurance
These two are always confused. Some even request “public indemnity insurance”, which is a combination of both names. They cover very different risks.
| Professional indemnity | Public liability | |
|---|---|---|
| Covers claims about | Your advice, designs or professional services | Injury or property damage to other people |
| Common claim | "Your advice cost me money." | "I fell over a cable in your office." |
| Who usually claims | Your clients | Clients, customers or members of the public |
| Type of loss | Financial loss | Bodily injury or property damage |
| Often required by | Regulators, professional bodies, client contracts | Councils, landlords, venues, head contractors |
Do I need both?
You may need both if your business faces professional-services risks as well as risks involving people or property. A physio gives advice (PI) and has patients walking through the clinic (public liability). An IT consultant works on a client’s systems (PI) and visits their office (public liability).
We frequently arrange public liability and professional indemnity insurance together where both exposures exist. Some insurers offer combined liability products for particular occupations, while others provide separate policies.
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WHAT DO I NEED?
How much professional indemnity insurance do you need?
There’s no one right number. There are four things that should set your limit.
1. Your licence or registration. Some regulators prescribe minimum requirements. For example, QBCC requires private certifiers to hold at least $1 million, while ASIC considers at least $2 million appropriate for AFS licensees with retail financial-services revenue of $2 million or less.
2. Your contracts. The limit is often set by the government or corporate client, and is higher than people think.
3. The size of your work. Think about the biggest loss a client could claim from a mistake on your largest job.
4. How defence costs are handled. Check whether legal costs sit inside your limit or on top of it. When they are inside, a long legal battle eats into what’s left for compensation.
Not sure what your contract requires? Send us the insurance clause and we will help explain the stated insurance requirements. Legal advice may be needed where the contractual wording is unclear or extends beyond insurance matters.
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WHO NEEDS THIS TYPE OF INSURANCE
Who needs professional indemnity insurance?
PI may be valuable if clients rely on your advice, expertise, designs or professional services and could suffer loss if something goes wrong. Some of the professions we arrange insurance for:
Advice and finance
Accountants, Bookkeepers and BAS agents, Tax agents ,Financial planners Mortgage and finance brokers, Business and management consultants ,Real estate agents, Recruitment consultants
Design and construction
Architects, Engineers, Building designers and drafters, Building certifiers and inspectors, Surveyors Town planners, Project managers, Interior designers
Health, tech and creative
Allied health practitioners Psychologists and counsellors Personal trainers IT consultants and developers Web and graphic designers Marketing and PR agencies Copywriters and content creators Event planners
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PI can also be important for sole traders and freelancers. A one-person business can still face significant defence costs, and some clients require contractors to provide evidence of PI before work begins.
PRICING
How much does professional indemnity insurance cost?
PI premiums are more variable than most business insurance premiums, as the risk depends so much on the type of work. A bookkeeper and a structural engineer can pay very different amounts for the same limit.
These are the factors that affect the price:
- Your profession and the type of work you do
- The limit you choose
- Your annual turnover or fee income
- The allocation of your fees across various services
- The number of staff and contractors you have
- Your claims history
- The agreements you enter into and the customers you serve
PI premiums vary significantly between professions and businesses. The most reliable guide is a quote based on your occupation, turnover, services, claims history, contracts and required limit.
The cheapest PI quote may not provide the most suitable cover
Two quotes may be near the same price and miles apart on cover. One might reset your retroactive date. Another may leave out the work you do most frequently. We don’t just compare the premium, we compare the wording, so you know what you’re paying for.
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Why US
Why businesses choose VIM Cover for professional indemnity
The purchase of PI online is fast. Assessing PI properly takes someone who reads the fine print. As a professional indemnity insurance broker, here are some things we do that a comparison site can’t.
We check your retroactive cover
We check how previous work will be treated when you renew or switch insurers and identify any potential gaps.
We help align your limit with your contracts
Give us the insurance clause and we’ll let you know what it’s really asking for.
We’re here for you at claim time
If a client complains, we help you notify the insurer promptly and support you through the claims process.
We shop around Leading insurers’ quotes, broken down in simple terms. Operating in Queensland, serving businesses all over Australia.
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“My experience with VIM was nothing but professional”
– Laura Evans
Certificate of currency
Looking for a certificate of currency?
A certificate of currency is a one-page document that demonstrates that your PI policy is in effect. It displays your name, your insurance company, your limit and the expiration date of your policy.
You’ll usually be asked for one when you:
- Sign a new client contract or tender for work
- Join a supplier panel
- Obtain or renew a licence or registration. Depending on the licence class, a regulator such as QBCC may require a certified certificate of currency, declarations or additional supporting documents.
- Work as a subcontractor for a bigger company
A certificate can be requested at any time by VIM clients.
Related INSURANCE
Cover that works well alongside professional indemnity
Public liability insurance for claims involving injury or property damage, subject to the policy terms
Management liability insurance for selected risks arising from managing a business, which may include directors and officers liability
Cyber insurance for selected data breach, cyberattack and cyber incident response costs
Business insurance packages for property, business interruption and other selected business risks
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Trusted by Australian businesses
We are responsive, easy to deal with and results-oriented, which is why businesses select VIM Cover. We do our best to get the right cover at the right price, and we support it when it matters most.
FAQ
Frequently asked questions
Is professional indemnity insurance compulsory in Australia?
It is compulsory for some registered professionals, licence holders and regulated businesses. Examples include registered tax and BAS agents, registered health practitioners, relevant AFS and credit licensees, registered migration agents, Queensland law practices and certain QBCC licence holders. Other businesses may need PI under a client contract, tender or professional association requirement.
How much professional indemnity insurance do I need?
Start with any minimum your regulator sets, then check your contracts. Then consider the largest loss a client might have from your largest job. We can assist you to get to the right number.
How much does professional indemnity insurance cost?
The cost depends on factors including your profession, services, turnover, required limit, contracts, staff and claims history. A quote based on your actual business is more useful than a broad market average.
What's the difference between public liability and professional indemnity?
Public liability is for injuries or damage to others. Professional indemnity is for financial loss resulting from your advice or services. A tripped customer is public liability. A client who loses money because of your advice is PI.
Do I need both public liability and professional indemnity insurance?
You may need both if you provide professional advice or services and also face risks involving people or property. The appropriate combination depends on your activities, work locations, contracts and profession. Some insurers offer combined products for eligible occupations.
Is personal indemnity insurance the same as professional indemnity?
Usually, yes. Personal indemnity insurance is not a standard insurance product. If people are looking for it, they are almost always referring to professional indemnity insurance, which protects against claims relating to your professional work.
Do sole traders and freelancers need PI insurance?
When clients pay you for your advice or professional services, it’s worth having. A claim is just as expensive to defend for a one-person business as it is for a large firm, and many clients won’t hire a contractor without proof of cover.
Does professional indemnity cover work I did before the policy started?
It may cover earlier work if the work occurred after the applicable retroactive date and the claim otherwise falls within the policy. When changing insurers, the retroactive date and any continuity provisions should be checked carefully.
What is run-off cover and when do I need it?
PI premiums are generally deductible where they relate to earning assessable income or running the insured business. The treatment depends on the insured’s circumstances, so an accountant should confirm the position.
Should I use a broker for professional indemnity insurance?
PI is one of the more difficult covers to compare, as the retroactive dates, limits and exclusions are all different. A broker compares the wording as well as the price, and backs you up when a claim comes in.
Related Guides
How It Works
Get your professional indemnity insurance sorted
One claim can undo years of good work. Tell us what you do and we will compare professional indemnity options suited to your profession, contractual requirements and budget.
The information you need to provide for a quote
Some information in advance leads to a quicker and more precise quote:
- Your business name, ABN and your business description
- Annual turnover, and approximately how your fees are divided between services
- Number of staff and contractors
- The types of clients and contracts you work with
- Your current policy, limit and retroactive date (if applicable)
- Any past claims, complaints or circumstances that could lead to one
Have clear guidance, customised options and cover structured from the outset.
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