Professional indemnity insurance

Product Decription

Professional indemnity insurance offers protection to the insured against claims from third parties resulting from the errors and omissions made by the insured while providing contracting and consulting services. At present, the legislation provides for coverage of professional risks assumed by real estate agents and lawyers as well as by companies rendering services in IT and media sectors.

Objects of Insurance

The object of insurance are property interests that do not contravene the laws of the Russian Federation and are exposed to risks associated with the insured’s liability for obligations resulting from the damage caused to property, life or health of third parties (clients) during professional activities performed by the insured.


  • Errors and omissions
  • Defense expenses, fees and costs

In addition, the professional indemnity insurance policy can provide the following coverage

  • Recovery of computer data and files
  • Compensation for attending court proceedings
  • Intellectual property rights
  • Employees’ dishonesty
  • Verbal and written defamation

Most of the clients who selected professional indemnity coverage with AIG are represented by auditors and accountants, lawyers and attorneys, multimedia and IT companies.

Main advantages of cooperation with AIG, CJSC

  • Professional indemnity insuring clauses that address interests and concerns of professionals in a variety of industries
  • High standards in methods of claims settlement, including elements of quality control over the settlement process at different levels of corporate management
  • Availability of insurance with AIG companies in other countries of the world, including an option of development of a global insurance program providing for issuance of locally tailored policies to comply with the applicable laws and regulations or to meet requirements of the insured

Professional indemnity insurance is an insurance product that will protect you in the event that your business is sued by a client. This could happen if a client is unhappy with the work you’ve produced or professional advice you’ve provided. Even if you haven’t made a mistake you may still have to fight a claim.

If you’re a professional business that provides advice and services to your clients, PI cover should be seen as an essential consideration for your business insurance package.

It’s important that you feel confident in the quality of your work, but even with the best intentions accidental errors and disputes over quality can happen. If they do, professional indemnity insurance can help to protect you if claims are brought against you by a client. PI will help to put mistakes right and cover any legal costs.

Do I need professional indemnity insurance?

PI isn’t just for traditional legal or accountancy practitioners. Anyone who provides a professional service, gives advice, handles client data, or is responsible for intellectual property should consider taking out PI insurance. Businesses you may not expect to need it, such as green energy consultants, IT consultants, or coaches and trainers all have the potential to face a claim. Insurance might also be a condition of a contract that you undertake, or of a professional body that you belong to. If this is the case, then the level of minimum level of PI may be decided for you.

If you’re in control of your PI policy, then it’s crucial that it’s tailored to your specific business sector or needs. For example, in our experience, unintentional breach of a written contract to supply software or hardware is a common claim in the IT sector. And damage limitation cover is important for anyone working in media, marketing and PR, in the event you accidently leak confidential information ahead of a press launch.

What does professional indemnity insurance cover?

Professional indemnity insurance covers you in case you need to pay to correct a mistake, or to cover legal costs, if you make an error in your work. While this falls under cover for ‘negligence’, you should also consider a policy that offers cover for intellectual property, dishonesty, defamation and loss of documents too.

You would draw upon your professional indemnity insurance if, for example, an employee sends a gossipy email about a difficult client to a supplier and copies in the client by accident. You may also need it if your IT system fails causing you to lose some of your client data or documents, and they’re difficult and costly to retrieve it. A case for infringement of intellectual property rights could arise when incorporating copyrighted stock images without permission without asking for permission first.

PI insurance can cover you for all these eventualities from the start of your policy, but if you’re worried that work you’ve already done may need to be protected against a claim you can also get a retroactive date for your policy.

How much does professional indemnity insurance cost?

When you buy insurance, whether it’s for your home or your business, you’ll be asked how much cover you want to buy.

Sometimes, the answer is easy. For office insurance, it’s a matter of totting up the cost of replacing your items if they’ve been damaged or stolen. But for professional indemnity insurance, it can be harder to estimate how much cover you’ll need for your business. And because each business is unique, there’s no one-size-fits-all solution. But if you have to work out cover for yourself, here are a few things to consider:

The size of the contract

Another important factor to think about is the size of the client. How deep are their pockets? If they have the cash they may decide to sue you as a matter of principle, and you’ll need to make sure you can afford it.

Legal costs

As well as potentially being required to compensate your clients, there may be legal costs to pay for the investigation and defence of your case. Don’t underestimate how much this could potentially cost. Legal costs can run into the thousands if the case is complex.

Getting professional indemnity peace of mind

When you run your own business, the responsibility for getting things right sits firmly on your shoulders. While it may seem like a lot to consider, particularly if your business has never faced a claim situation before, it makes sense to get the right level of protection should the worst happen. This will ensure you have the appropriate legal support and the financial means to get your business back on track as quickly as possible.

Compare PI insurance quotes today

We firmly believe you should have confidence in your expertise and trade. But when it comes to work, everybody makes mistakes. Professional indemnity insurance – or PI insurance for short — is there to protect you if your client suffers a financial loss through your work for them.

Using one simple form, Simply Business will help you arrange this cover as part of your full business insurance policy, or coupled with public liability insurance. Many professionals — such as consultants, accountants, IT contractors, architects and surveyors — can also buy professional indemnity insurance as a stand-alone cover.

Compare professional indemnity insurance quotes from our panel of top UK insurers and find the policy that best suits your needs in minutes.

What is professional indemnity insurance?

Professional indemnity insurance is an important cover for businesses that give advice or provide a professional service to clients. It can pay for compensation claims and legal fees that may arise if a client suffers a financial or professional loss due to negligence in your work.

Our consultant Hattie explains the ins and outs of professional indemnity and why PI cover is key for so many small businesses.

What does professional indemnity insurance cover?

Professional indemnity insurance can cover you in the event that a client loses money as a result of negligence in your advice, services or designs. It can cover legal fees and compensation payments, with the compensation often taking into account the financial loss that the client has suffered.

More specifically, professional indemnity insurance covers you for mistakes such as:

  • professional negligence or breach of duty of care (making a mistake in your work or providing bad advice)
  • unintentional copyright infringement (such as using copyright protected content without permission)
  • unintentional breach of confidentiality (such as sharing confidential or sensitive information without consent)
  • loss of documents or data
  • defamation or libel (a published false statement that is damaging to a person’s or company’s reputation)

Tailor your professional indemnity policy to meet your needs

You can add various optional extras to your professional indemnity policy, including cover for:

  • Data protection and copyright breaches
  • Defamation
  • Breach of confidentiality
  • Business equipment
  • Loss of documents
  • Bodily injury (from breach of professional duty)
  • Dishonesty of employees
  • Court attendance costs
  • Public liability
  • Employers’ liability


Find out more about these optional extras in our ‘What’s covered?’ section.

Professional indemnity insurance FAQs

What is Professional indemnity insurance?

Professional indemnity insurance covers legal costs and expenses incurred in your defence, as well as any damages and costs that may be awarded, if a client says they’ve lost money as a result of you giving them bad advice, services or design. Although it’s not a legal requirement, if you’re a management consultant or work in accountancy, architecture or chartered surveying, it’s likely that you’ll need to have professional indemnity insurance. Without it, you could be exposed to thousands of pounds worth of legal fees and compensation payments, not to mention lost income from time spent defending a claim. Click here to find out more about professional indemnity insurance.

How much does Professional indemnity insurance cost?

Having professional indemnity could save you a tidy sum, and is quick and easy to arrange online or over the phone. There are several things to consider, like the level of cover you choose and the type of work you do.

Do I need Professional indemnity insurance?

Many small businesses take out professional indemnity, it’s a really popular insurance if you provide professional service advice, or handle client data and intellectual property. So, if your business does any of this, you could be open to allegations ranging from breach of copyright, to accusations of defamation. But if you’re not sure you need PI, either contractually or as best practice, click here to find out more.

What does Professional indemnity cover?

Professional indemnity insurance can cover you in the event that a client loses money as a result of negligence in your advice, services or designs. It can cover legal fees and compensation payments, with the compensation often taking into account the financial loss that the client has suffered. More specifically, professional indemnity insurance covers you for mistakes such as breach of confidentiality, defamation, loss of documents and dishonesty of employees. All of these claims can be costly and disruptive regardless of whether they’re fair or not. Find out more about what’s covered here.

What’s a typical example of a Professional indemnity claim?

While you do your best to get everything right, From IT consultants losing data to accountants getting their sums wrong, we’ve all made mistakes or misunderstood a brief, leading to claims running into the tens of thousands of pounds. Find out more here.

Specialist professional indemnity policies

If you belong to a professional body or industry association, professional indemnity insurance may be compulsory. And even if you don’t, many professions will almost certainly need PI insurance.

That’s why we provide specialist professional indemnity policies for certain professions and occupations, including:

  • Management consultants
  • Business consultants
  • Accountants and bookkeepers
  • Architects
  • IT consultants
  • Creative, marketing and media professionals (such as web designers, graphic designers and PR consultants)
  • Contractors (including IT contractors)


Professional indemnity insurance for management consultants

As a management consultant, businesses rely on your advice to improve their performance.

But what if a client feels that you’ve been negligent or your advice was flawed and has cost them money?

With AXA’s professional indemnity for management consultants, you’ll have up to £5 million cover to rely on. And you’ll also be able to add a number of optional extras, including cover for copyright breaches, defamation and breach of confidentiality. AXA—reassuring cover you can trust.

Professional indemnity insurance for business consultants

We know making recommendations for other people’s businesses requires a high level of expertise. But what works well for one company could result in unexpected losses for another.

And if the business you’re consulting for thinks your specialist advice has caused them to lose money, they could make a claim against you.

If they do, our professional indemnity insurance for consultants can protect you.

With us, you’ll have up to £5 million cover to rely on. And you’ll also be able to add a number of optional extras, including cover for copyright breaches, defamation and breach of confidentiality.

That way, you’ll have the peace of mind to get on with your job – and you can leave the worrying to us.

Professional indemnity insurance for accountants and bookkeepers

From accidentally giving a customer the wrong price to mixing up a client’s tax return, even the best accountants and bookkeepers make mistakes.

But with AXA’s professional indemnity insurance for accountants, you’ll have the peace of mind that you’re covered if your client makes a claim against you.

AXA are approved insurers for the Institutes of Chartered Accountants and our professional indemnity insurance complies with their requirements. So if you’re a member of ICAEW, ICAS or ICAI, we’ve got you covered.

Our professional indemnity insurance is also suitable for members of other professional bodies in the accountancy profession, such as ACCA, CIOT and ATT. Now that’s cover you can count on.

Professional indemnity insurance for architects

As an architect, we know planning is your bread and butter. But in business, there are some things you just can’t plan for.

And if you make a mistake or if your client thinks you’ve given them bad advice that’s caused them to lose money, they could make a compensation claim against you.

Thankfully for you, our professional indemnity insurance has been specially built with architects like you in mind.

It covers your legal costs and compensation payments – and meets the criteria specified by the Architects Registration Board.

So if you’re a member of the Royal Institute of British Architects (RIBA) or the Royal Institute of Architects Scotland (RIAS), we’ve got you covered.

Professional indemnity insurance for IT consultants

Whether you’re a self-employed IT consultant or run a small consultancy firm, it’s typically you that’s responsible for advising clients on how to improve their IT systems and software.

And while you’re an expert in your field, one small mistake could lead to you losing sensitive data or missing a deadline – and those are problems you can’t just turn off and on again.

If you do make a mistake, we’re there to protect you. With our professional indemnity insurance for IT consultants, you get protection you can rely on.

You’ll have up to £5 million cover for legal defence and compensation costs – and you’ll also have the option of adding cover for data protection breaches and loss of business equipment.

Professional indemnity insurance for creative, marketing and media professionals

From designing websites and writing copy, to advising your client on how to manage their reputation, creative, marketing and media professionals like you provide expert advice day in, day out.

But even the smallest mistake, like making a typo on a client’s design to accidentally using a copyright-protected image without permission, could lead to an unhappy client and a big compensation claim.

With our professional indemnity insurance though, your legal defence and compensation costs are covered as standard. And you’ll have the option of adding defamation and breach of copyright cover too.

Here’s a small selection of the creative, marketing and media professions that we cover:

  • Designers (including graphic designers, web designers, fashion designers and interior designers)
  • PR professionals
  • Copywriters and proofreaders
  • Party planners
  • Videographers


Professional indemnity insurance for contractors

As a contractor, you know just how different one job can be from the next. And since your clients are relying on the wealth of knowledge and experience you bring to each project, you’re in a position of trust.

But not everything always goes to plan. And that’s when professional indemnity insurance for contractors comes in.

With up to £5 million cover to rely on, you’ve got peace of mind in knowing you’re covered if a client makes a compensation claim resulting from your services or advice.

Professional indemnity insurance may also be required by some clients – so purchasing cover can help make sure you’re best placed for all the business opportunities that come your way.

Other occupations

As well as the occupations listed above, we also provide professional indemnity insurance to around 200 other professions and occupations, including:

  • Management consultants
  • Training consultants
  • Estate agents – suitable for members of the National Association of Estate Agents
  • Programmers
  • Surveyors – complies with the requirements of the Royal Institution of Chartered Surveyors
  • Telecommunication consultants

Professional Indemnity Insurance is an important type of cover for a business, however it is particularly relevant to those in professions which provide advice for a living. A professional can be anyone who «provides advice or services of a skillful character according to an established discipline». A claim for compensation as a result of incorrect professional advice or services, whether your business is big or small, can set back your business severely.

Defining Professional Indemnity Insurance

Professional Indemnity Insurance covers against claims for liabilities owed to a third party (typically a client of the insured) for the loss suffered by the third party arising out of the insured providing ‘professional services’. To ‘indemnify’ means to cover the insured for the liability owed to the third party for the loss suffered. Professional Indemnity Insurance therefore is a type of insurance which can protect your business, for example against claims for financial loss, or bodily/personal injury and/or property damage that arise from an act, error or omission in the performance of the professional services covered by the policy.

For example incorrect designs made by an architect, incorrect advice provided by a migration agent with respect to visa requirements, failure to detect unsafe work conditions by a work, health & safety consultant can all result in a financial loss or bodily injury to a client, and therefore result in a potential claim for compensation against the insured.

Why is Professional Indemnity Insurance important?

On occasion it’s possible in your profession to unintentionally breach privacy or confidentiality, omit information, make an error of judgement or provide the wrong advice. A simple act, error or omission can lead to a claim against your business, therefore making it vital to protect yourself, your business, and reputation.

Professional Indemnity Insurance is important as the legal costs associated with defending any claims can be significant. Court and other legal fees to defend your business are often underestimated, and small businesses in particular can struggle to find the money to pay for this, regardless if they are found liable or not for damages. Court cases can also drag on for extended periods of time, with ongoing fees over years which can have a significant financial impact on your business.

Professional Indemnity Insurance is important as it can protect you from bearing the full cost of these claims. This can allow you to keep your business up and running as normal, without too many disruptions to your normal operations.

Who needs Professional Indemnity Insurance?

Professionals such as lawyers, accountants, bookkeepers, architects, engineers and marketing specialists are a few of the professions where Indemnity Insurance can apply. Professions that have more hands-on jobs are less likely to need Professional Indemnity Insurance, however it can still apply in some cases. For example, agricultural consultants, event managers, life coaches and marriage celebrants.

Whatever industry you work in, as a Professional in that industry, you hold the responsibility that your advice or services is of quality. Therefore if you provide advice or services to your client which are incorrect, you could potentially be liable to pay for losses occurring as a result of this.

Regardless of your profession or the size of your business, Professional Indemnity Insurance provides businesses with the peace of mind to keep working confidently. You can find some more information about Indemnity Insurance on our website here.

Protect your professional reputation, your business and your livelihood with the right cover. For more information regarding Professional Indemnity Insurance, contact CGU today.

Professional Indemnity

Exposure to Liability

Professionals and professional service organisations perform in an environment of increased responsibility and accountability.

If your organisation, employee or a party you may be legally or contractually responsible for, fails to exercise a competent degree of skill and care in the performance of their duties, you can be held responsible.  With litigation becoming an increasingly common means of settling disputes, professionals are being held more accountable for their advice and actions and any losses suffered as a consequence.

Liability may arise from breach of contract or in tort for damages arising from negligence.

Claims, whether spurious or not, often require protracted legal action to defend which can be costly, regardless of the outcome.  The burden of litigation ultimately impacts on the capital of the organisation and in certain circumstances may place the organisation under extreme financial pressure.

Insurance Solution

Professional Indemnity insurance can help protect you and your organisation against the financial strain of litigation.  It covers your legal liability to compensate third parties for losses caused by a breach of professional duty or negligence in the performance of your professional services.

Cover can extend to include your legal liability to third parties, which emanates from other parties contracted to you.

Typical purchasers of Professional Indemnity include:

  • Accountants
  • Architects
  • Corporate Advisory/Merchant Bankers
  • Customs Agents
  • Design Specialists
  • Engineers
  • Financial Institutions
  • Insurance Brokers/Financial Advisers
  • Lawyers
  • Management Consultants/HR Consultants
  • Medical Professionals
  • Real Estate Agents
  • Surveyors
  • Technology Consultants & Suppliers/Software Designers
  • Valuers


Policies provide a broad scope of coverage. Many policy extensions are either included automatically, or are readily available as “add ons” for an additional premium.

However, policies do differ significantly in scope of cover between insurers.  Therefore, it is important that you consult with a specialist insurance broker before making any decisions on which policy best suits your particular requirements.

Some of the risks that can be covered by a Professional Indemnity policy include:

  • Civil Liability arising from the provision of professional services
  • Protection of employees as well as the organisation and its principals / partners
  • Payment of legal defence costs and expenses as they are incurred
  • Defamation – covers defamatory remarks made about others (either written or oral) in the course of conducting your business
  • Cover for costs incurred at official investigations
  • Unintentional infringement of copyright, trademarks, designs or patents
  • Cover to protect the organisations assets against theft or fraud by an employee
  • Cover for liability arising as a result of the dishonesty of any employee or principal / partner of the organisation
  • Cover for past liabilities of a predecessor’s business activities
  • The cost of replacing lost or stolen documents, plans, models etc, and for liability incurred as a result of the loss
  • Cover for former and incoming principals / partners and employees

Policies can be tailored to cover exposure from liabilities incurred anywhere in the world – including USA.

Professional Indemnity Insurance Explained

Learn how to protect yourself and your small business with our comprehensive guide to professional indemnity insurance, also known as professional liability insurance.

What’s in this guide to professional indemnity insurance?

  • What is professional indemnity insurance?
  • What does professional indemnity insurance cover you for?
  • Do I need professional indemnity insurance?
  • Examples of professional indemnity claims
  • How much professional indemnity insurance do I need?
  • Small business professional indemnity insurance

One of the most exciting business trends of recent years is the rise of independent consultants and small businesses, which offer highly-specialist knowledge, skills and advice to clients and customers.

Offering these kinds of services is not without its risks. Mistakes are made from time to time, and without the right cover, these can prove costly.

What is professional indemnity insurance?

Professional indemnity insurance is a type of liability insurance designed to protect businesses and individuals who provide advice or expertise to third parties.

Also known as professional liability insurance or errors and omissions insurance (E&O), this cover is designed to protect you if a customer alleges that you provided faulty or inadequate advice and services. If you have professional indemnity insurance, the cost of your legal defence will be covered, along with compensation you may need to pay to the client following a claim made against you.

Professional indemnity insurance should not be confused with other types of business insurance which cover more ‘tangible’ grievances, such as:

  • Public liability insuranceCover for claims made by third parties (members of the public) if they are injured or have their property damaged during the course of your work.
  • Employers’ liability insuranceA legal requirement if you have employees, this cover protects you if someone you employ claims compensation due to an accident or illness which has arisen as a result of their employment with you.
  • Product liability insuranceIf a member of the public is injured, becomes ill or has their property damaged as a result of a product you have manufactured, supplied or distributed, you could be liable. Product liability will cover compensation and your legal defence.

Do I need professional indemnity insurance?

Some professions are required to have professional liability by regulators in their industry. This includes:

  • Financial advisers
  • Solicitors
  • Architects
  • Chartered surveyors
  • Healthcare professionals

Though not a legal requirement for everyone, professional indemnity is worth considering by any company or sole trader that is in the business of offering advice, knowledge or skills as part of their services. It’s also worth remembering that, with this type of cover, you’ll be protected regardless of whether a claim is justified or not.

Examples of professional indemnity claims

Depending on your sector, the kinds of professional indemnity claims you could encounter will vary dramatically. For instance, a spelling mistake on a printed advert could land the responsible marketing agency in hot water.

That said, there are some common claims which affect most industries:

  • Professional negligenceThis occurs when you make an error while doing a piece of work for a client. For instance, if an engineer designed a heating system for a large hotel reception room but did not consider its size adequately, meaning the installed radiators did not heat the area sufficiently and the system had to be removed and redesigned.
  • Loss of money or goodsShould your client entrust you with money or goods which you subsequently lose, they could sue you. A typical scenario would involve a shoe mender being entrusted with a customer’s shoes: they are legally liable for the safe storage and return of the shoes.
  • Losing documents or dataWhen business documents and data are lost, companies risk their trade secrets falling into their competitors’ hands. If an IT contractor loses confidential information, a claim could be made against them.
  • Defamation: libel and slanderLibel and slander insurance covers you against a law suit should someone feel that you have written or said something defamatory about them that is also false. Slander is the term for anything that has been spoken and libel for anything written.
  • Breach of copyright or confidentialityAccidental use of another’s intellectual property can be an expensive mistake. If a graphic designer uses a font without permission, they are breaking copyright law and could be sued.

I am starting my own practice. Do I need both professional indemnity and public liability insurance, and if so, why?

Starting your own practice can be an exciting time, but it can also be daunting going out on your own, particularly with all the set up costs involved. When it comes to insurance, you need to consider whether you can afford not to have it in place. Faith Chapman from Towergate Insurance explains why professional indemnity and public liability insurance is important:

Professional indemnity cover will protect against any claims made against you should you be accused of Professional Negligence, this can include things such as incorrect advice or recommendation, breach of professional code of conduct, loss of documents or breach of confidentiality. A client could allege that as a result of a recommendation you made in a session, they have suffered an adverse effect and as a result they have been harmed. This type of policy will cover the costs to defend you against this allegation, and ultimately if the client is successful in suing you, will pay out the damages awarded.

Public liability cover will protect you in the event of any claims made in respect of accidental injury or damage to a client or a member of the public, and it also covers loss or damage to public property. If for example you accidentally spilt coffee on a client’s laptop this would be covered or if a client were to trip over whilst visiting you, this policy would cover the legal costs to defend you, and again pay out if the client was successful in suing you.

Small business professional indemnity insurance

One survey found that 75% of small business owners are worried about making professional mistakes, yet less than half of those who give clients advice take out professional indemnity insurance.

If you’re a sole trader or heading up a small business, your client-base and budget might be limited, but the cost of a claim made against you can be damaging without the right cover.

Professional indemnity insurance for businesses like yours

The recent rapid growth in the number of small, dynamic businesses and freelancers in the UK is hugely exciting. Filling out niches which never existed until the last few years, this sector of the economy has a very positive future ahead.

What Is Professional Indemnity Insurance?

This article explains what professional indemnity insurance is, who needs it and what it covers.

This article is a definition of what professional indemnity insurance is in the UK, plus explain who needs it and what it covers.

Professional indemnity insurance definition

Professional Indemnity insurance covers your business against claims for financial and reputational damage. If you deal in intangible products, like advice or data, professional indemnity cover can make a real difference if things go wrong.

Who needs professional indemnity insurance?

The most common customers for indemnity insurance are professionals. It covers them if claims are made with regard to their advice or creative work, letting them do their jobs with more confidence.

What’s more, digital companies may look to professional indemnity cover in case of errors or false claims around data handling or copyright infringement.

Here’s who and where else indemnity insurance can help:

  • Traditional professional services that advise can benefit from liability limitation
  • Digital companies could be covered against losses caused by data breaches, or by issues with intellectual property
  • Some smaller businesses have for potential claims as they often have limited resources to fight a court case, even a spurious one.

What can professional indemnity cover?

Professional indemnity is for intangible products, such as advice, design, specification, software development, or data. In an increasingly knowledge-based economy it’s an important part of insurance cover.

For example:

  • If an accountant were to give advice in good faith, they might face a lawsuit for resulting losses if the advice turned out to be poor. Here this type of policy can help to cover her business
  • A company designs custom software for a certain purpose and the client claims it’s not up to standard. Professional indemnity would cover them where public and products liability wouldn’t
  • Even sending an email containing confidential information to the wrong recipient—the slip of a mouse—could result in a civil case. Again, you’d be covered.

Whatever your business, if you’re dealing with advice, software, data or other services, this type of insurance policy insures you if things go wrong with a client.

Tips for getting the best professional indemnity insurance cover for you

A successful claim for compensation can range from hundreds of pounds to far larger sums. In fact, some clients will state the value of the cover they look for as a condition of business, which will give you some guidance.

  • You should always be careful about the period of time for which you’re covered. You can choose a policy that covers you for actions taken during the policy and where the claim is also made during the cover. But you can also get retroactive cover for your past liabilities*.
  • You should also be careful about what is included in the policy. Some provide elements of cyber cover, others don’t.

*As long as you had a professional indemnity insurance policy in place

Another thing to look out for is whether your professional indemnity policy will cover legal costs as part of its claims settlement. And, of course, always check the excess that’s to be paid towards a claim.

What is Professional Indemnity insurance?

Professional Indemnity insurance is designed for professionals who provide advice or a service to their customers. It protects you against legal costs and claims for damages to third parties which may arise out of an act, omission or breach of professional duty in the course of your business.

If a mistake or omission occurs in the course of your work that results in financial loss or injury to a third party (e.g. a customer)—that customer may take legal action against you to recover their losses. Professional Indemnity insurance seeks to protect both your assets and your reputation, should this occur.

Why do I need it?

Defending yourself from a professional conduct claim can cost you time, money and damage your reputation, regardless of whether the allegations are founded or not. If things do go wrong you could be held responsible not only for your own actions but for those of your partners, employees or volunteers.

All dance professionals need to ensure they are protected against unfounded allegations as well as breaches of professional duty. A Professional Indemnity insurance policy safeguards you and your business by providing cover against such claims, including the cost of defending the action—so you can conduct your business with the confidence that both your assets and your reputation are protected.

Who is covered by my Professional Indemnity policy?

A Professional Indemnity insurance policy should cover not only your business but also any principal, employee, director, partner or related entity whilst acting with the scope of their duties.

How much cover do I need?

A limit of $5,000,000 is automatically included if you take out an annual Public Liability Policy with Aon and Ace Insurance Limited.

Is professional indemnity insurance mandatory?

In respect of industry bodies’ regulatory requirements, many business sectors require PI insurance — accountancy, engineering and surveying to name but a few. Professionals working on a contract basis — such as management consultants, business consultants and IT contractors — will almost certainly need PI insurance in order to be awarded a contract.

However, even if you are not legally obliged to have PI insurance, without it you could have to pay thousands of pounds in compensation and legal fees to defend a claim. This would be in addition to the opportunity cost of time spent defending the allegations.

No matter how large or small a business, without PI cover your financial position could be left vulnerable if a claim is brought against you. Although most professionals strive to provide the best service possible, people do make mistakes; knowing that adequate insurance is in place will give you peace of mind that your organisation is covered.

Do I need professional indemnity insurance?

If you provide advice, designs or a service to your clients, you should give serious consideration to professional indemnity insurance.

While most firms enjoy good relationships with their clients, a mistake in a project can change working dynamics overnight. The chances are that if a client suffers a significant financial loss as a result of your negligence, they are likely to seek recompense.

Professional indemnity insurance

We have been leaders in the professional indemnity sector for over 20 years. We have a broad appetite for most core and regulated professions along with other miscellaneous professions.

We focus on international and UK-domiciled business and can deploy capacity of £ 10m/€ 15m/$20m on any one risk and up to £15m/€22.5m / $ 30m for miscellaneous professions only. Our aim is to provide excellent service via our expert underwriters who are available both at Lloyd’s and at our offices at 20 Fenchurch Street. We can accept and administer risks electronically, using Markel-produced policy documentation. Our policy wordings have been carefully drafted to meet the specific needs of different professions, and our flexible and innovative approach ensures that we can provide coverage for unusual risks.

Professional Indemnity Insurance

In service-based businesses, your reputation means everything. It can take years to build, but just weeks or even days to destroy in the event of an accusation of negligence, professional misconduct, or a breach of your duty of care.

AIG offers insurance solutions for a wide range of professions where your clients depend on your expert guidance. Our policies ensure peace of mind for you, your employees and your business, covering the costs associated with the specialist assistance required to defend allegations against you or your organisation.

Welcome to Professionals Australia

We are a network of 25,000 Australian professionals working together for a better future for all our members. We want to make sure Australian professionals get the respect, recognition and reward we deserve.

We can help you at every stage of your career with expert advice on your pay, your conditions and your rights at work. We advocate strongly for our members to help create a better future for your profession.

We are the foundation of a successful, modern nation, driving greater productivity and building a stronger economy. Yet in many cases, our role remains little understood and under-appreciated. Australia’s professionals deserve greater respect, recognition and reward.


Professional Indemnity Insurance, also referred to as PI Insurance, protects against claims alleging a breach of professional duty including both damages payable and legal costs incurred in defending a claim.

Professional Indemnity is a specialist area of insurance and should be arranged in partnership with a specialist broker.

Why might you need Professional Indemnity Insurance?

A professional is considered an ‘expert’ in their field and other people rely upon your expertise with this reliance giving rise to a ‘Duty of Care’. If you breach this duty of care those persons affected can claim damages against you. This applies even though you may have provided your services free of charge or to people who were not party to your contract.

As a professional you need Professional Indemnity insurance to either satisfy government regulations, contractual obligations or simply to protect your assets.

Why choose BRIC for you PI insurance?

BRIC are insurance brokers with specialist professional indemnity insurance capabilities. We are not affiliated with any particular insurer and negotiate competitive and appropriate terms with more than 25 different sources of professional indemnity insurance Australia.

Many suppliers of this insurance are not specialists or act as agents of insurers. Insurance Brokers operating under Binding Authorities or Insurance Agents owe a legal obligation to an insurer as their agent. In such cases they are not legally obliged to point out to you any potential deficiencies in the cover they are offering. Not all policies are the same.

Let us work with you to arrange the best possible cover at the most competitive price.

Our Professional Indemnity insurance services include:

  • Advice and negotiation with insurers — we have access to both local and overseas professional indemnity insurance markets;
  • Policy wording interpretation;
  • Risk management advice on how to improve your risk profile;
  • Advice on what you need to do to improve the presentation of your risk to the market;
  • General advice as to what insurers will accept under your contracts;
  • Claims and circumstances management and advice;
  • Advising you of the appropriate strategy for the renewal of your insurance over the long term; and much more.

Our expertise has been recognised by:

  • Engineers Australia
  • Consult Australia
  • The Australian Institute of Building Surveyors
  • The Australasian Institute of Marine Surveyors
  • The Victorian Building Authority
  • The Department of Environment and Planning NSW and many others…

Our services include advice and negotiation with insurers (we have access to both local and overseas professional indemnity insurance markets); policy wording interpretation; risk management advice on how to improve your risk profile; what you need to do to improve the presentation of your risk to the market; general advice as to what insurers will accept under your contracts; claims and circumstances management/advice; the appropriate strategy for the renewal of your insurance over the long term and much more.

Professional Indemnity Insurance

Every law practice in Queensland must hold professional indemnity insurance.

QLS established Lexon Insurance Pte Ltd (Lexon) (formerly QLS Insurance) in 2001, which has helped protect solicitors from rises in PII premiums.

Further information is available from Lexon’s website.

Financial Services Reform disclosure notice

Pursuant to ASIC class order relief, the Queensland Law Society and/or persons responsible for these matters are not licensed under the Corporations Act 2001 (Cth) in relation to the operation of the:

  1. Law Claims Levy Fund;
  2. Professional indemnity insurance arrangements made under the Queensland Law Society Indemnity Rule 1987 (Qld) and, from the repeal of that Rule, the Queensland Law Society Indemnity Rule 2005(Qld); and
  3. Legal Practitioners Fidelity Guarantee Fund.

The QLS is not regulated under the Insurance Act 1973 (Cth).

Lexon Insurance Pte Ltd ARBN 098 964 740 is exempt from the requirement to hold an Australian financial services licence under the Corporations Act 2001 (Cth) in respect of financial services.

Lexon is incorporated in Singapore Company Number 200104171C and is regulated by the Monetary Authority of Singapore under Singaporean law, which differs from Australian law. Singapore has a system of financial supervision of insurers and you should consider whether to obtain further information about that.

Lexon is not authorised under the Insurance Act 1973 to conduct insurance business in Australia and is not subject to the provisions of that Act which establishes a system of financial supervision of general insurers in Australia.

Lexon has paid up capital of AUD $19M and any disputes in relation to the terms of the Master Policy will be governed by Queensland law.

Lexon cannot be a declared a general insurer for the purpose of Part VC of the Insurance Act 1973 (Cth) and, if Lexon becomes insolvent, you will not be covered by the financial claims scheme provided under Part VC of that Act.

What is Professional Indemnity Insurance?

Professional indemnity insurance is designed for professionals who provide advice or services to their customers. It helps protect your business against legal costs and claims by third parties for damages arising from acts, omissions or breaches of professional duty in the course of your business.

This means that if you do something (or neglect to do something) in the course of your work, and a customer suffers injury or financial loss as a result, they may take legal action against you. With the right policy, you can defend your business against the claim and prevent financial loss.

Do I need Professional Indemnity insurance?

It can cost you and your business significant time and money to defend against a claim of malpractice, professional misconduct, or breach of duty. You could be held responsible not only for your own actions, but also for those of your partners, employees or volunteers.

A professional indemnity insurance policy helps safeguard your business by providing cover against claims, including legal defence costs so you can confidently go about your work, knowing that if the worst happens, we’ll be in your corner.

It is recommended that all professionals within the building industry including, builders, building surveyors, subcontractors, building inspectors / certifiers, draftspersons, architects, engineers, project managers should carry this cover to help protect you and your business.

Contact HIA Insurance services to learn more about Professional Indemnity insurance for your business.