Professional indemnity insurance
Professional indemnity insurance quotes from licensed Australian brokers
If you are paid for your advice or your expertise, this is the policy that answers when a client says it cost them money.
- Licensed Australian brokers
- Free to use
- No obligation
Professional indemnity covers claims that you gave advice or provided a service negligently, and that someone suffered a financial loss as a result. It is required under the licensing regimes for several professions and demanded contractually by most corporate and government clients. It also works differently from almost every other business policy, because it operates on a claims made basis, and understanding that difference is the single most useful thing an owner can know about it. CoverMy is free to use, and licensed Australian brokers come back with options.
What professional indemnity covers
The core is your legal liability for a breach of professional duty: negligent advice, an error in a design, a missed deadline, work that did not meet the standard a reasonable practitioner would apply. Defence costs are a large part of the value, since professional claims are frequently defended and legal fees mount quickly even where you are ultimately not liable.
- Negligent acts, errors and omissions in professional services
- Legal defence costs, sometimes within the limit and sometimes in addition to it
- Breach of confidentiality and unintentional intellectual property infringement on many wordings
- Loss of documents and data belonging to clients
- Defamation arising from professional activities on some policies
- Fidelity and cyber extensions offered by some insurers
Claims made is the part that catches people
Most business insurance responds to events that happen during the policy period. Professional indemnity responds to claims made against you during the policy period, regardless of when the work was done, provided the work falls after your retroactive date. Two consequences follow. If you let the policy lapse, you have no cover for past work even though you paid premiums for years. And if you switch insurers, the new retroactive date needs to reach back to cover your earlier work, or a gap opens up.
Retroactive dates and run off cover
The retroactive date is the point before which work is not covered. Ideally it goes back to when you started practising, and maintaining continuous cover is what preserves it. Run off cover deals with the other end. When you retire, sell the business or stop practising, claims can still arrive for years afterwards, and run off keeps the policy responding after you have stopped trading. Several professional bodies require run off for a set period. Ask about it well before you wind down.
Who needs it and what drives the price
Anyone paid for expertise: consultants, engineers, architects, accountants, financial advisers, IT professionals, designers, medical and allied health practitioners, real estate agents, brokers and many others. Several of these are required to hold it under their licensing regime. Premium turns on the profession, fee income, the limit and excess, the type of work and the size of the contracts you take on. Underwriters will ask about your quality processes and any circumstances that might give rise to a claim, and that last question needs an honest answer.
How it works
- 1
Tell us about your profession and fee income
2 min form
- 2
Licensed brokers review and compete on your quote
- 3
Compare offers and choose
No obligation
Frequently asked questions
What is the difference between professional indemnity and public liability?
Public liability covers physical injury and property damage caused by your business activities. Professional indemnity covers financial loss caused by your advice or professional services. An architect whose scaffolding injures a passer by needs the first. An architect whose design specification is wrong needs the second. Many professionals need both.
What does claims made mean?
The policy responds to claims made against you while the policy is in force, not to when the work was done, provided the work is after your retroactive date. It means you need cover in place when the claim arrives, which is often years after the job. Letting a policy lapse removes cover for all your past work.
What is a retroactive date?
The date before which work is not covered. Ideally it reaches back to when you started practising. Maintaining continuous cover preserves it, and it is one of the main things to check when changing insurers, because a later retroactive date can quietly strip cover from years of past work.
Do I need run off cover when I retire?
Usually. Claims can be made for years after you stop working, and a claims made policy that has been cancelled will not respond. Run off cover keeps the policy live for past work after you cease trading. Several professional bodies mandate it for a set period, so check your association's requirements.
How much professional indemnity do I need?
Licensing regimes set minimums in some professions, and client contracts often specify a limit. Beyond that it depends on the size of the projects you work on and the loss a mistake could cause. Your broker can quote several limits so you can see the cost of moving up.
Does CoverMy sell the insurance?
No. CoverMy passes your request to licensed Australian brokers who contact you directly. All advice, quotes and policies come from the broker you deal with. There is no cost and no obligation.
Get professional indemnity quotes
Tell us about your profession and licensed brokers will be in touch. Or call 1800 677 761.
Other cover you might need
This page is general information only. It does not take your situation into account and it is not a recommendation to buy any policy. Cover, limits and exclusions vary between insurers, so read the Product Disclosure Statement and Target Market Determination and refer to your broker for the full details of any policy.
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This page is general information only. It does not take your situation into account and it is not a recommendation to buy any policy. Cover, limits and exclusions vary between insurers, so read the Product Disclosure Statement and Target Market Determination and refer to your broker for the full details of any policy.
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