Professional Indemnity Insurance Australia – Tailored PI Cover for Professionals
Protect your professional practice against specified claims arising from errors, omissions and alleged negligence.
Clarke Lyons Insurance helps Australian professionals explore professional indemnity insurance that reflects their services, clients and business structure. Whether you work independently or manage an established firm, we help you understand available cover and relevant policy limitations.
Request a professional indemnity insurance quote or review your existing PI cover with Clarke Lyons Insurance.
What Is Professional Indemnity Insurance?
Professional indemnity insurance, often called PI insurance, can cover specified civil liability claims arising from professional services or advice.
Depending on the policy, it may pay eligible defence costs and compensation following a covered claim. A client’s allegation can require a response even where you believe your work was correct.
The professional services declared to the insurer are important. Cover should reflect what your business actually does, including specialist activities and additional services.
Who Needs Professional Indemnity Insurance?
Consider PI insurance if clients rely on your expertise, recommendations, designs, reports or professional services.
It may also be required by a regulator, professional association, registration arrangement or client contract.
Relevant exposures can arise when you:
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Provide advice or recommendations.
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Prepare designs, calculations or specifications.
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Manage transactions, records or client instructions.
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Assess property, financial or business information.
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Deliver specialist technical services.
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Handle confidential information as part of professional work.
The appropriate policy depends on the profession. Insurance requirements and suitable wording are not identical across industries.
Professional Indemnity Insurance by Profession
Explore cover considerations for your profession below. Clarke Lyons can discuss your activities and available options, subject to insurer acceptance and any applicable professional requirements.
Accounting, Finance and Advisory
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Finance Professionals
Architecture, Engineering and Design
Property and Legal Services
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Buyers Agents
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Lawyers
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Legal Professionals
Technology Professionals
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Software Developers
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Technology Professionals
Business and Consulting Services
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Consultants
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Business Consultants
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Strategy Consultants
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Recruitment Consultants
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HR Consultants
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Marketing Consultants
Health and Allied Health
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Health Practitioners
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Allied Health Professionals
Self Storage Facility Insurance
Some professions require particular approved arrangements, schemes or specialist wordings. Clinical services may require medical malpractice or combined professional cover. Confirm the requirements applying to your practice before choosing a policy.
What Can Professional Indemnity Insurance Cover?
The policy wording determines which liabilities, services and expenses are insured.
Areas to review include:
Professional Negligence
Claims alleging that your professional work fell below the required standard and caused loss.
Errors and Omissions
Allegations involving incorrect information, overlooked details or failures to perform an agreed professional task.
Breach of Professional Duty
Specified civil liability arising from the conduct of your insured professional services.
Defence Costs and Compensation
Eligible costs of defending covered claims and compensation payable under the policy’s terms.
Additional Extensions
Depending on the product, extensions may address matters such as defamation, confidentiality, intellectual property, lost documents or specified investigation expenses. These are not automatic inclusions.
Check sublimits, exclusions and insurer consent requirements alongside the main policy limit.
Professional Indemnity Claim Examples
These examples illustrate exposures to discuss with your broker. They do not establish that a particular claim would be covered.
An accounting error: A client alleges that an error in professional work caused financial loss.
A design omission: A client claims that missing information in a design led to additional project costs.
An incorrect recommendation: A business alleges that it relied on unsuitable advice when making a commercial decision.
A transaction mistake: A client alleges that a missed instruction or deadline affected a property transaction.
A technology implementation error: A customer claims that a failure in delivered professional services disrupted its operations.
The insured services, circumstances and wording determine whether a policy responds.
Is Professional Indemnity Insurance Compulsory?
Requirements depend on your profession, registration, location and contractual arrangements.
Before arranging cover, establish whether you need:
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A particular minimum limit.
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An approved policy or scheme.
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Specified extensions.
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Cover for particular entities or practitioners.
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Ongoing protection after ceasing practice.
A policy labelled “professional indemnity” does not automatically satisfy every professional or contractual requirement.
Provide relevant requirements to your broker so proposed options can be assessed against them.
How Does Claims-Made PI Insurance Work?
Professional indemnity policies commonly operate on a claims-made and notified basis.
This makes the timing of a claim and its notification important, even where the work was performed earlier.
Review:
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What the policy defines as a claim.
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When notification is required.
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How potentially claim-related circumstances are treated.
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Any retroactive date.
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Exclusions for known matters.
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Continuity when changing insurers.
If a complaint, demand or incident may lead to a claim, seek prompt guidance. Do not assume you should wait for court proceedings before notifying the insurer.
Retroactive Cover and Run-Off Insurance
Cover for Earlier Work
A retroactive date may restrict which earlier professional services fall within the policy.
When changing insurers, compare the treatment of past work as well as the premium and limit.
Cover After Retirement or Closure
Claims may arise after a business stops providing services. Run-off insurance may be relevant when retiring, closing a practice or selling a business.
Discuss previous work, known circumstances and any professional requirements before allowing existing insurance to lapse.
How Much Professional Indemnity Cover Do You Need?
Start with applicable professional and contractual requirements, then assess the potential consequences of a claim.
Consider:
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The services you provide.
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Client and project size.
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Potential financial loss arising from an error.
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Whether several clients could be affected.
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Defence costs.
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Overseas work.
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Available resources to meet an excess.
Ask whether limits apply per claim or across the policy period, how related claims are treated and whether defence costs reduce the available limit.
Revenue alone does not establish the amount of protection needed.
Professional Indemnity vs Public Liability Insurance
These policies address different exposures.
Professional indemnity concerns specified claims arising from professional services or advice.
Public liability generally concerns specified liability for injury to other people or damage to their property arising from business activities.
A consultant could face an advice-related claim and a separate allegation of damage caused during a client visit. Depending on the activities, both covers may be relevant.
Professional Indemnity vs Cyber Insurance
PI insurance should not be assumed to cover every cyber incident.
A client alleging negligent professional work raises different questions from an attack that compromises your own systems, exposes personal information or interrupts operations.
Review cyber response costs, payment fraud, privacy liabilities and professional services together.
Explore cyber insurance and, for technology businesses, IT liability insurance.
What Does Professional Indemnity Insurance Not Cover?
Exclusions vary. Important areas to review include:
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Known claims or circumstances.
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Services outside the insured business description.
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Contractual liabilities beyond the insured protection.
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Performance guarantees.
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Fee refunds or the cost of redoing work.
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Cyber incidents and payment fraud.
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Deliberate wrongdoing and the treatment of innocent insured parties.
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Fines and penalties.
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Claims outside territorial or jurisdictional provisions.
A broad description of cover does not replace the policy wording. Ask which exclusions are most relevant to your services.
Employees, Contractors and Multiple Services
Make sure the insured entity and professional services accurately describe the business.
Explain your use of employees, contractors, outsourced support and related entities. Your business’s liability for another person’s work is different from that person being insured in their own right.
Also disclose secondary services. For example, a practice offering bookkeeping, tax services and business advice should not be described using only its main activity.
How Much Does Professional Indemnity Insurance Cost?
PI insurance costs depend on the profession, activities and protection selected.
For a meaningful quote, prepare details of:
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Revenue and service categories.
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Practitioner experience.
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Clients and project values.
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Claims and complaints.
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Contractual requirements.
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Employees and contractors.
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Overseas activities.
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Required limits and excesses.
Compare policy scope, continuity and significant exclusions alongside price. A lower premium may not represent equivalent protection.
Why Choose Clarke Lyons for PI Insurance?
Clarke Lyons Insurance helps professionals assess their requirements and explore insurance options suited to their activities.
We can help you compare proposed terms, understand relevant limitations and review cover as the business changes. Our service also includes renewal assistance and claims support.
Whether you are a sole practitioner or an established firm, the starting point is an accurate understanding of your work.
What Information Is Needed for a PI Quote?
Prepare your business description, revenue breakdown, current policy schedule and renewal date.
Also include relevant professional requirements, key contract conditions, previous insurance details and claims or known circumstances.
Tell us about planned changes, such as adding services, acquiring another practice or expanding overseas.
Professional Indemnity Insurance FAQs
What is PI insurance in simple terms?
PI insurance can help pay eligible defence costs and compensation when a covered claim alleges that your professional services caused loss.
Can I be insured against an allegation if I did nothing wrong?
A policy may cover eligible defence costs for a covered allegation even where liability is disputed. Check the wording and consent requirements.
Do sole traders need professional indemnity insurance?
Sole traders should assess their services, potential liabilities and professional or contractual requirements. Working alone does not remove advice-related risks.
Is errors and omissions insurance the same as PI insurance?
The terms overlap. Errors and omissions is often used to describe professional liability protection, but the actual wording and insured services matter more than the product name.
Can I obtain PI insurance for a new business?
Options may be available, subject to insurer acceptance. Provide realistic forecasts, qualifications, experience and a clear description of planned services.
Does PI insurance cover subcontractors?
Check whether the policy covers your liability arising from subcontracted work and whether the subcontractor is also an insured party. These are separate questions.
Will PI insurance cover overseas clients?
Check both territorial scope and jurisdiction provisions. Disclose where clients are located and which law governs your contracts.
Does a client contract guarantee that my policy will respond?
No. A contract can create obligations beyond the insurance protection. Review significant indemnities, guarantees and liability provisions before accepting them.
Where can I get a professional indemnity insurance quote?
Contact Clarke Lyons Insurance with your profession, services and existing insurance details to discuss available options and applicable requirements.
Request a Professional Indemnity Insurance Review
Understand how your professional services, previous work and potential claims are addressed.
Contact Clarke Lyons Insurance to request a PI insurance quote or review your current professional indemnity protection.
This information is general. Cover depends on insurer acceptance, applicable professional requirements, policy wording, schedules, endorsements, limits and excesses.