Professional Indemnity Insurance for Your Business

As a business owner, you pride yourself on delivering the results your clients expect, every time. However, despite our best efforts, mistakes can (and do) occasionally happen. You don’t want to put everything you have worked so hard for at risk; this is why professional indemnity insurance is essential.


What is Professional Indemnity Insurance?

Professional indemnity insurance provides cover for you and your business if you or your employees’ actions cause a loss for one of your clients. Often, it's what prevents a business with an error from losing everything.


Is It Mandatory for All Businesses?

There are some fields where a professional indemnity policy is required. These include:

  • Medicine
  • Financial advising
  • Accounting
  • Law

The precise details of mandatory cover vary from state to state. Additionally, a professional indemnity policy is typical for those working in a profession where:

  • They are part of a collective organisation
  • They offer advice to clients
  • They are involved in teaching and training
  • They create designs for clients
  • A client has requested you have professional indemnity cover to take a contract
Family couple consultations with a professional indemnity insurance agent.

My Profession Isn't Listed Above, Do I Still Need This Type of Cover?

Professional indemnity insurance is a highly recommended safety net for owners of all manner of businesses.

Accidents and unexpected mistakes are a part of life for everyone. Because you must be prepared for the unexpected, attaining this type of insurance cover will give you peace of mind and could save you thousands of dollars as well as your business’ reputation.

What Occurances Will Professional Indemnity Insurance Cover?

While specifics often differ from policy to policy, most professional indemnity insurance policies can cover:

Type of Cover
Potential Benefits
Fidelity Cover
A financial loss incurred by a business as a direct result of fraudulent employee conduct. The employer must have found dishonest acts during the period of insurance.
Civil Liability
Legal obligations caused by private misdeeds or a breach of contract that is not a criminal act.
Enquiry Costs
The cost involved in defending the insured from an investigation of their professional actions by a regulatory entity.
Defence Costs
The price of defending a claim against the owner of the professional indemnity policy.
Advancement of Costs and Expenses
Covers any extra costs accumulated during a claim.

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What Are the Typical Exclusions of a Professional Indemnity Policy?

Expenses that your professional indemnity policy does not cover will depend on the individual policy. Generally, the following exclusions apply:

  • Pollution
  • Costs incurred because of fraud on the part of the insured
  • Unpaid fees
  • Commercial liabilities
  • Third-party bodily injury and property damage
  • Contractual liabilities

Case Study

A builder miscalculates the necessary supports to a foundation. As a result, the foundation slab cracks and there is damage to the property. Without professional indemnity insurance, the builder is liable for between $150,000 to the total value of the home. By carrying the necessary insurance, the builder will not have to pay out of pocket to repair damages.


Please be aware this data is not a substitute for professional advice. It is an overview of topics frequently involved in professional indemnity insurance and is for informational purposes.

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Our highly trained and experienced insurance claims staff are adept at dealing with all claims, quickly and effectively.

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With many businesses facing increasingly difficult financial times, premium funding is useful as it enables your business to free up its cash flow for use elsewhere.