Professional indemnity (PI) insurance

You would generally need professional indemnity cover if you provide service to clients that involve giving advice or sharing your expertise. Some examples of professions who should consider professional indemnity insurance include:

• Consultants – management consultants, IT consultants, financial advisers, accountants, designers, lawyers, brokers
• Construction professionals – builders, architects and engineers
• Healthcare and allied health professionals – doctors, dentists, naturopaths, acupuncturists, beauty and massage therapists.

You should consider professional indemnity (PI) cover because it provides financial protection for you and your business in the event that a claim is made against you for negligence, breach of duty, or an error or omission. It can also help build trust with clients and may demonstrate a level of commitment to the quality of your work.

For some professions, PI insurance is even a legal requirement. If you are not sure whether it’s a requirement for your field of work or business, it’s a good idea to check with your local governing industry body.

It depends on a few factors – for example, you would need to assess the risks associated with your industry and the services you provide, as well as the possible impacts you might have on your clients. Some professions may also be required by law to have a minimum level of cover for their industry, but these can vary depending on which state or territory you live in.

To match you with the best level of professional indemnity cover for your business needs, it would be wise to first seek advice from a broker who understands your industry or business requirements.

The cost of your professional indemnity insurance will depend on several factors, including your business size, revenue, and services provided.

When requesting a quote, be sure to fill in the form values as accurately as possible, so we can arrange the right premium and cover for your business.

Or you can request a call back to speak to a Marsh advisor for a clearer picture.

Generally, professional indemnity insurance doesn’t cover existing circumstances, intentional damage, contractual obligations and bankruptcy.

Professional indemnity insurance can cover you for claims made due to incorrect or misleading advice.

Public liability, on the other hand, can cover you against claims resulting from property damage, accidents or injuries that happen due to your business activities.

Yes. The terms are interchangeable, and they refer to the same insurance.

‘Claims made’ is an insurance policy that covers claims made against you during the current insurance period – regardless of when the claim event happened.

Professional indemnity policies provide a ‘claims made’ cover, because errors in these professions are often discovered weeks, months or even years after the mistake was made.

This means you must have a current professional indemnity policy or a ‘run-off’ policy in place at the time of the claim, as you won’t be protected by old policies.

Another important note: If the indemnity limit has been changed, it’s the limit in effect when the claim is lodged (ie 2020) that applies – not the limit purchased when the work was done (ie 2017).