Bookkeeper PI Insurance

Premiums typically range from $400 to $2,500 per year depending on your revenue, services offered, number of clients, limit of indemnity and claims history. Sole practitioners with modest revenue often pay under $1,000 per year. Contact Shielded Insurance for a quote tailored to your bookkeeping practice.

The Tax Practitioners Board requires all registered BAS agents to hold PI insurance that covers civil liability arising from the provision of BAS services. The minimum coverage amount depends on the size of your practice, including your revenue and number of clients. Your policy must remain in force throughout your registration period. Shielded Insurance can confirm the specific requirements for your practice size.

Yes. If you lodge an incorrect BAS that results in ATO penalties, interest charges or an incorrect GST refund for your client, PI insurance covers the defence costs and any resulting financial loss claim. This is one of the most common claim types for bookkeepers and BAS agents.

Yes. If the ATO penalty was caused by your negligent preparation or lodgement of a BAS or other tax document, PI insurance covers the claim from the client for the financial loss they suffered, including the penalty amount. The policy covers both the damages and the legal costs of defending the claim.

Yes, provided payroll processing is included within the definition of professional services in your policy. If you process payroll for clients and make an error that results in underpayment of employees, incorrect PAYG withholding or missed superannuation payments, PI insurance covers the resulting claim. Ensure payroll is specifically listed in your policy.

You need run-off cover to protect against claims made after you cease practising that relate to work done while you were active. BAS errors can take time to surface, particularly if the ATO conducts a review or audit of a prior period. Arrange run-off cover before your final policy expires to maintain protection.

Yes. Many insurers offer packages that combine professional indemnity with public liability, cyber liability and management liability cover. These bundles can be cost-effective for small bookkeeping practices. Shielded Insurance can compare bundled and standalone options to find the most suitable and affordable arrangement for your business.

Professional indemnity (PI) insurance protects professionals and businesses against claims arising from negligent acts, errors, omissions or breaches of professional duty in the provision of services or advice. It covers legal defence costs, settlements and damages awarded against you. PI insurance operates on a claims-made basis, meaning the policy in force when the claim is made responds – not the policy in force when the work was performed.

Any professional who provides advice, designs, recommendations or services to clients should carry PI insurance. This includes accountants, architects, engineers, lawyers, financial planners, mortgage brokers, IT consultants, real estate agents, builders, health practitioners, management consultants and many more. For many professions, PI insurance is mandatory under Australian legislation or industry body requirements.

PI insurance premiums depend on your profession, annual revenue or fee income, claims history, limit of indemnity required and the scope of services you provide. A sole practitioner consultant might pay $500 to $2,000 per year for $1M cover, while a mid-size engineering or accounting firm could pay $5,000 to $20,000+ for $5M to $10M cover. High-risk professions like financial planning or building design attract higher premiums.

PI insurance typically covers legal defence costs (solicitors, barristers, court fees), damages or settlements awarded to the claimant, investigation costs from regulatory bodies, breach of professional duty, negligent acts or omissions, unintentional breach of confidentiality, loss or damage to client documents, and defamation arising from professional activities. Cover extends to past work through retroactive dates.

Yes, for many regulated professions in Australia. Mandatory PI insurance requirements apply to solicitors, financial advisers (AFSL holders), mortgage brokers, accountants (registered tax agents), architects, building practitioners in most states, real estate agents, migration agents, customs brokers, and various health practitioners. Requirements vary by state and professional body – check your specific obligations.

Professional indemnity covers financial loss caused by your professional advice or services – for example, an accounting error that costs a client money. Public liability covers physical injury or property damage caused by your business operations – for example, a client tripping over a cable in your office. Most professionals need both, but they cover fundamentally different risks.

PI insurance operates on a 'claims-made' basis, meaning the policy that responds is the one in force when the claim is first made or notified – not the policy that was in force when the work was performed. This is why continuous, unbroken cover is essential. If you change insurers or let your policy lapse, you may lose cover for past work. Run-off cover is available for professionals who retire or close their practice.

The limit of indemnity you need depends on your contractual obligations, regulatory requirements and risk exposure. Many contracts require $1M, $2M, $5M or $10M minimum cover. Regulatory requirements vary by profession – for example, AFSL holders have specific minimums set by ASIC. Consider your largest client contracts and the potential financial impact of a claim when selecting your limit.

Contact us at Shielded Insurance on 1800 97 98 99 or your insurer directly. With PI insurance, early notification is critical – you must notify your insurer of any claim or circumstance that could give rise to a claim as soon as you become aware of it. Late notification can jeopardise your cover. Never admit liability or attempt to settle a claim without insurer approval.

We access a broad range of Australian domestic markets, specialist underwriting agencies and international capacity including Lloyd's of London syndicates. This allows us to place cover for standard professions through to complex or hard-to-place risks. As brokers, we compare multiple options to find competitive and suitable cover for your profession and risk profile.