Professional Indemnity Insurance: Find a Broker

What is Professional Indemnity Insurance?

Written by COVRA · Updated 19 October 2026 · Sources

Professional indemnity insurance generally covers claims of professional negligence: that your advice or professional services caused a client or other third party a loss. It generally covers the cost of defending those claims too. It generally doesn’t cover injuries or property damage, which are usually handled under public liability, and some professions must hold it to practise. It’s also called professional liability or errors and omissions insurance.

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Who commonly considers it.

Consulting & Management Advisors, business consultants, strategists
Technology & IT Software developers, network engineers, IT contractors
Engineering & Design Structural engineers, architects, draftspeople
Creative & Media Marketing agencies, freelance copywriters, designers

What professional indemnity covers.

Policies vary. Based on one insurer’s policy, they generally cover these.

Claims about your work Claims that your advice or professional services caused a client a loss, such as a breach of professional duty¹².
Defence costs The cost of defending a claim¹².
Other claims Privacy breaches, defamation, lost documents, intellectual property infringement and misleading conduct, on some policies¹².
Extensions Regulator enquiries, public relations costs, employee dishonesty and run-off cover, depending on the policy¹².

How a claims-made policy works.

Professional indemnity works differently to most insurance: the policy that counts is the one in force when a claim is made, not when the work was done.

Claims-made A claim must be made and notified during the policy period¹². See claims-made vs occurrence.
Retroactive date The date from which past work is covered. Work done before it isn’t¹⁴.
Run-off cover Cover for claims made after you stop practising. Ahpra expects health practitioners who stop practising to hold it, unless their old cover was occurrence-based, and CPA Australia requires seven years of it^{17, 24}.
Known complaints A new policy generally won’t cover a complaint or circumstance you knew about before it started^{11, 12}. Under section 40(3) of the Insurance Contracts Act 1984 (Cth), a circumstance notified in writing to the current insurer as soon as reasonably practicable, and before that policy ends, stays with that policy even if the claim comes later.

How the policy limit works.

CGU’s wording is the example, with ASIC’s rules for AFS licensees.

Any one claim, and in total The limit commonly applies to any one claim and to all claims in the policy year. CGU’s policy limit applies both ways, and claims from one act, error or omission, or a related series, count as one¹².
Reinstatement Some wordings reinstate the limit once. CGU covers up to twice the policy limit for all claims in the period, though no single claim exceeds the limit¹². ASIC requires at least one automatic reinstatement for AFS licensees unless the limit is at least twice the minimum¹⁴.
Costs inclusive or in addition Defence costs sit inside the limit (“costs inclusive”) or on top of it (“costs exclusive”). CGU pays claim investigation costs in addition to the policy limit, up to a further amount equal to it¹². ASIC requires defence costs in addition to the minimum limit for AFS licensees, or a higher limit to allow for them¹⁴.
When a claim exceeds the limit Costs-exclusive wordings usually scale defence costs back in proportion, the average provision. CGU pays the proportion of costs that the limit bears to the settlement¹². Berkley’s example: $1 million limit, $2 million settlement, $750,000 legal costs. The insurer pays $1 million plus half the costs, $375,000; the insured funds the other $1,375,000⁴².
The excess The policyholder’s share of each claim, paid once for all claims from the same act or related series¹². In CGU’s wording it applies to defence costs only when the schedule says “costs inclusive”¹².

What it doesn’t cover, such as public liability claims.

Other covers pick these up.

Injury and property damage Public liability covers injury to other people and damage to their property⁶. See public liability vs professional indemnity.
Your employees Injured employees are covered by workers’ compensation¹³.
Your own losses Refunds of your fees, lost profit and insolvency generally aren’t covered. Business interruption and cyber insurance cover some of your own losses^{12, 13}.
Fraud and deliberate acts Excluded, although a firm can be covered for an employee’s dishonesty^{11, 14}.

Costs

How much does professional indemnity cost?

APRA publishes quarterly market data, but not average premiums by job. These are brokers’ published figures and an Insurance Council average worked out from APRA data: a guide, not a quote.

Typical, all businesses $1,221

A year, and the middle half paid $764 to $2,092. upcover, 2022 to 2026.¹

BizCover customers $103 a month

Average, July 2024 to June 2025. BizCover.²

A $1 million limit $843

A year, average February 2025 quote for a self-employed tax agent earning $150,000. Finder.⁸

Market average $2,286

Per risk in September 2025, down from $8,503 in 2022. Insurance Council, citing APRA.¹¹

Premium a year by industry: the median, with the middle half of policies as the bar. From upcover’s 270+ policies arranged from 2022 to 2026, published September 2026¹.

Construction and trades Middle half: $1,721 to $3,745

$2,119 median

IT and telecoms Middle half: $850 to $2,941

$1,795 median

Real estate Middle half: $1,399 to $2,024

$1,555 median

Engineering and technical Middle half: $1,304 to $1,490

$1,319 median

Finance and insurance Middle half: $575 to $4,133

$1,221 median

Professional services Middle half: $910 to $1,538

$1,135 median

Medical practitioners With public liability. Middle half: $779 to $2,475

$1,061 median

Allied health With public liability. Middle half: $435 to $611

$503 median

BizCover’s monthly averages for 2024–25: architecture and engineering $210, real estate $175, trades $112, consultancy $88, and accounting and tax $62². In APRA’s 2021 data, average premiums by occupation group ranged from $470 for medical and paramedical work to $66,777 for local government¹⁰.

Price by cover limit in Australia.

Current published figures stop at $1 million. These are Finder’s average quotes from February 2025 for a self-employed tax agent earning $150,000.

$250,000 limit

$667 a year⁸

Average quote.

$500,000 limit

$719 a year⁸

Average quote.

$1 million limit

$843 a year⁸

Average quote: four times the limit of $250,000, for about 26% more.

APRA found 2021 premiums averaged $1,389 for limits under $5 million, and $6,118 for limits over $10 million¹⁰.

What affects the price.

What insurers commonly look at.

Your profession and services

Some professions and services carry more risk than others, as the industry figures show^{1, 2}.

Staff

BizCover’s averages rise from $83 a month with no staff to $189 with five².

Limit and excess

The cover limit and the excess you choose^{1, 8}.

Claims history

Past claims, and circumstances that could lead to one¹.

Turnover

Your fee income or turnover⁸.

Business size

APRA found the premium per $1 million of fees falls from about $8,700 for micro businesses to about $500 for large ones¹⁰.

Which professionals must hold it.

Some professions must hold professional indemnity insurance by law, or to be registered or keep their membership. These are the minimums set.

Health practitionersRegistered practitioners must have appropriate cover, set by each Board’s standard. It can come through an employer^{16, 17}. For NDIS providers, see NDIS provider insurance.
Tax and BAS agents$250,000 to $1 million, depending on turnover, and $2 million or more for tax (financial) advice¹⁸.
SolicitorsNSW: $2 million through Lawcover. Victoria: $2.5 million from 1 July 2025. Queensland: through Lexon^{20, 21, 23}.
Accountants in public practiceCPA Australia and CA ANZ: $2 million to $75 million, depending on fees^{24, 25}.
Financial services and credit licenseesAt least $2 million, and up to $20 million depending on revenue^{14, 15}.
ArchitectsVictoria: $1 million per claim. NSW: appropriate cover, with no set minimum^{30, 31}.
Engineers and building designersNSW design practitioners must hold it; NSW building practitioners are exempt until 30 June 2027. Queensland registered engineers must take all reasonable steps to hold appropriate cover. Victorian endorsed building engineers must hold the cover required by section 135 of the Building Act 1993^26–29.
Building certifiers and surveyorsNSW certifiers: $1 million plus 20% for expenses. Queensland private certifiers: $1 million. Victorian building surveyors must hold it^35–37.
Real estate agents, NSW$1 million per claim, and $3 million in total³⁴.
Conveyancers, NSWCover under the approved master policy³².
Migration agents$250,000³³.

When a contract asks for it.

Clients and government agencies often set a minimum in the contract.

Queensland GovernmentPrequalified building consultants must hold at least $1 million per claim, and usually $1 million to $10 million³⁸.
Government contracts generallyThe Insurance Council has described the professional indemnity requirements in many government contracts as onerous¹¹.

Common exclusions.

Every policy lists its exclusions. These are from one insurer’s policy, as an example.

Known claimsClaims and circumstances known before the policy started¹².
US and CanadaClaims brought in the United States or Canada¹².
Contract promisesWarranties and guarantees you give in a contract¹².
Related partiesClaims by related businesses or people¹².
Fees and debtsRefunds of your fees, and trading debts¹².
Goods and workmanshipFaulty goods and workmanship¹².
FinesFines, penalties and punitive damages¹².
Deliberate actsIntentional wrongdoing¹².
Unregistered workWork done while not registered¹².

What claims cost in Australia.

From APRA’s May 2023 analysis of professional indemnity claims finalised in 2021.

Claims finalised

7,680

Costing $513 million in total¹⁰.

Smaller claims

About $50,000

The average for claims under $1 million¹⁰.

Large claims

$4.1 million

The average across 79 claims over $1 million¹⁰.

BizCover has published professional indemnity claims it paid, such as $29,585 for an architect and $10,000 for a hairdresser⁷. Professional indemnity isn’t a small business insurance product under AFCA’s rules, so disputes about the cover itself generally fall outside AFCA’s small business jurisdiction³⁹. AFCA reviews its monetary limits every three years⁴⁰, and complaints about other parts of a broker’s service may be treated differently.

FAQ

Common questions.

How much does professional indemnity insurance cost?

In upcover’s data, a typical business paid $1,221 a year, and the middle half paid between $764 and $2,092. It varies with your profession, turnover, limit and claims history.

What’s the difference between professional indemnity and public liability?

Professional indemnity covers claims that your advice or services caused a loss. Public liability covers injury to other people and damage to their property.

Is professional indemnity insurance compulsory in Australia?

Only for some professions, such as tax agents, solicitors, financial services licensees and registered health practitioners, and contracts can also require it.

Does my employer’s policy cover me?

It can. An employer’s cover can meet a health practitioner’s requirement for work done as part of the job, but not for private work. Tax practitioner employees who aren’t paid a fee don’t need their own policy.

What’s a retroactive date?

The date from which past work is covered. A claims-made policy covers work done on or after it.

What’s run-off cover?

Cover for claims made after you stop practising or a policy ends. Some professional bodies require it, such as CPA Australia for seven years.

Will a new policy cover a complaint I already know about?

Generally not. Policies exclude claims and circumstances known before the policy started. Under the Insurance Contracts Act, a circumstance notified in writing to the current insurer as soon as reasonably practicable, and before that policy ends, stays with that policy even if the claim comes later.

Are legal costs covered?

Policies cover legal defence costs, the cost of defending a claim. For financial services licensees, ASIC requires defence costs on top of the minimum limit, or a higher limit to allow for them.

Does doubling the limit double the price?

Not in published data. Finder’s February 2025 quotes for a self-employed tax agent averaged $667 for a $250,000 limit and $843 for $1 million.

Is professional indemnity insurance tax-deductible?

The ATO lists professional indemnity premiums as a deductible business expense. An accountant can explain how that applies to you.

Can I take a dispute about a PI claim to AFCA?

Generally not. Professional indemnity isn’t a small business insurance product under AFCA’s rules, so disputes about the cover itself fall outside its small business jurisdiction. Complaints about other parts of a broker’s service may be treated differently, so check with AFCA.

What do NSW real estate agents need to hold?

At least $1 million per claim and $3 million in total, according to NSW Fair Trading.

Can I get a professional indemnity insurance quote through COVRA?

Yes, from the broker. COVRA passes your enquiry to one licensed or authorised broker, who can get quotes from insurers for you. COVRA doesn’t quote or sell insurance itself.

Still have a question? A broker can talk it through with you.

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Why businesses use Covra.

One enquiry, one broker.

Not sure what cover you need

Talk it through with a licensed or authorised insurance broker, who can look at your business and your options.

Don’t want lots of calls

COVRA sends your contact details to one broker, not several.

No obligation

You don’t have to take out a policy.

Need it sorted properly

Professional Indemnity Insurance can be complex; discuss your insurance needs with a licensed or authorised broker.

Approved brokers on COVRA.

Licence and covers checked

Before a brokerage can receive enquiries, we check on ASIC’s professional register that it holds, or acts under, an Australian Financial Services Licence that covers general insurance, and check its website for the covers it offers.