Business Consultant Professional Indemnity Insurance

Premiums typically range from $800 to $5,000 per year for sole practitioners and small consulting firms with revenue under $500,000, depending on specialisation, limit of indemnity and claims history. Larger firms or those in higher-risk disciplines such as financial advisory can expect to pay significantly more. Request a free quote through Shielded for an accurate price.

The appropriate limit depends on the size and nature of your engagements. Sole practitioners typically carry $1 million to $2 million. Firms consulting to mid-market and large corporate clients usually need $5 million to $10 million. Government contracts often specify minimum limits. Your broker can help assess the right level based on your client base and contract terms.

Yes. PI insurance covers negligent advice regardless of whether it was provided in a written report, an email, a presentation or a verbal conversation. The challenge with verbal advice is evidentiary, as it can be harder to prove what was said. Maintaining file notes and written confirmations of key advice is good risk management practice.

Many PI policies extend cover to work performed by subcontractors engaged under your consulting agreement, provided you have appropriate contractual arrangements in place. Some policies require you to verify that subcontractors hold their own PI cover. Check your policy wording and discuss subcontractor arrangements with your broker.

Professional indemnity covers claims arising from your professional advice, reports and consulting deliverables. Public liability covers claims for bodily injury or property damage to third parties, such as a client tripping over your laptop cable during a workshop. Consultants typically need both policies for complete protection.

Most Australian PI policies provide worldwide cover for advice given from Australia, but may exclude or limit cover for claims brought in certain jurisdictions, particularly the United States and Canada, where legal costs and damages are significantly higher. If you consult to overseas clients, ensure your policy territorial limits are adequate.

Notify your insurer or broker immediately, even if the threat seems unlikely to proceed. PI policies operate on a claims-made basis, meaning you must report claims and potential claims during the policy period in which you first become aware of them. Early notification allows your insurer to manage the situation proactively and preserves your cover.

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.