Can I Change Professional Indemnity Insurers in Australia?
Yes. You can usually change Professional Indemnity Insurance providers, often at renewal and sometimes during a policy period. However, changing PI insurers should be handled carefully because Professional Indemnity Insurance is commonly claims-made cover.
The most important issue is not simply obtaining a lower premium. It is ensuring that your new policy protects the professional work you completed in the past and that you do not create a gap in cover.
Before switching, confirm the new policy’s retroactive date, treatment of prior work, declared professional services, claims-notification requirements and any known circumstances.
What happens when you change PI insurers?
When you change Professional Indemnity insurers, the new policy may become the relevant policy for claims first made and notified after it begins.
For example:
You provided consulting services in 2023.
You change PI insurers at renewal in 2026.
In 2027, a client alleges that the 2023 work caused financial loss.
The new policy may potentially respond if it covers the claim, your retroactive date reaches back to 2023 and there are no exclusions or prior-known circumstances that prevent cover.
This is why simply comparing the new policy’s limit and premium is not enough.
What is the most important thing to check when switching PI Insurance?
Check your retroactive date.
Your retroactive date is the earliest date from which your current policy may cover professional work. If the new policy has a more recent retroactive date than your existing policy, older work may be exposed.
Ideally, the replacement policy should preserve the retroactive date from your previous policy or provide broader retroactive cover, subject to insurer acceptance and policy terms.
For registered tax practitioners, the Tax Practitioners Board requires the new policy to preserve retroactive protection back to the earlier of the previous policy’s retroactive date or the start of the first policy in a continuous series. TPB guidance
Can I switch PI insurers at renewal?
Yes. Renewal is often the most straightforward time to change insurers because it allows the new policy to begin immediately after the current policy ends.
To avoid a gap:
Obtain replacement terms before the current policy expires
Confirm the new policy start date
Do not cancel existing cover until replacement cover is confirmed
Check the retroactive date is preserved
Ensure all current services are accurately declared
Notify any known claims or circumstances as required
Keep policy schedules and Certificates of Currency for your records
A one-day gap can matter under a claims-made policy.
Can I switch PI insurers mid-policy?
It may be possible to change Professional Indemnity insurers during a policy period, but this requires particular care.
Consider:
Cancellation terms and any return premium
Whether the insurer charges cancellation fees
The new insurer’s acceptance of prior work
Whether the new policy starts before the old policy ends
Any claims, complaints or circumstances that must be notified to the current insurer
Whether changing mid-term creates administrative or coverage complications
Unless there is a strong reason to change, renewal may be a cleaner opportunity to review and replace PI Insurance.
What should I do if I know about a potential claim?
If you know of a complaint, dispute, allegation, error or circumstance that could reasonably lead to a claim, do not wait until you change insurers.
Notify your current insurer or broker in line with the policy requirements. A new insurer may exclude known matters, and failure to notify a circumstance can jeopardise cover.
Examples include:
A client complaint alleging financial loss
A letter of demand
Discovery of an error in a report, design or professional service
A client threatening legal action
A regulatory complaint or investigation
A dispute over a project outcome or scope of work
Will a new PI insurer cover my previous work?
Potentially, but this depends on the new policy’s retroactive date, prior-known-circumstances conditions, continuity of cover, declared activities and policy wording.
A new insurer may cover unknown claims related to previous work completed after the retroactive date. It will not necessarily cover every historic matter, particularly if:
The work occurred before the retroactive date
There was a gap in PI cover
You knew of the matter before the new policy started
The work was outside your declared professional services
The policy excludes the relevant activity or claim type
What documents should I provide when changing PI insurers?
To help assess replacement cover, you may need:
Current PI policy schedule
Details of the retroactive date
Claims history and loss runs, if available
Details of all professional services provided
Revenue and fee income
Largest contracts or project values
Client industries
Contractual PI requirements
Details of employees, directors, subcontractors and entities
Any current or past complaints, claims or circumstances
Accurate disclosure is essential. Your PI policy must describe the work your business genuinely performs.
Should I switch PI Insurance providers for a cheaper premium?
A cheaper quote can be worthwhile, but it should never be the only reason to switch.
Compare:
The retroactive date and prior-work protection
Declared professional services
Policy limit per claim and in aggregate
Legal defence-cost treatment
Major exclusions and sub-limits
Excess
Contractual liability provisions
Run-off cover options
Claims service and insurer appetite for your profession
Professional Indemnity Insurance protects businesses against claims connected with their professional advice or services. The right policy needs to reflect your actual business exposure, not simply your current premium. business.gov.au guidance
Changing Professional Indemnity Insurance with Clarke Lyons
Changing PI insurers can be an opportunity to review whether your current policy still reflects your services, contracts, clients and past work. But continuity must be protected.
Clarke Lyons Insurance helps Australian professionals and businesses compare Professional Indemnity Insurance options, review retroactive dates, preserve prior-work protection and arrange cover suited to their circumstances.
Contact Clarke Lyons Insurance for a Professional Indemnity Insurance review or replacement quote.
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