Project Manager PI Insurance

Premiums typically range from $1,000 to $6,000 per year for sole practitioners and small project management firms. Construction project managers and those managing high-value projects generally pay towards the higher end. Premiums depend on revenue, industry sector, project values, limit of indemnity and claims history. Shielded Insurance can provide a tailored quote.

The appropriate limit depends on the scale and sector of your projects. Project managers working on smaller commercial or IT projects may find $2 million to $5 million sufficient. Construction project managers on major projects often need $10 million to $20 million to satisfy client contractual requirements. Your engagement contracts will typically specify the minimum required.

Yes, but you need to ensure the policy wording explicitly covers construction project management services. Some general professional indemnity policies have exclusions or limitations for construction-related work. Specialist construction PI policies are available and provide broader cover for the unique risks of managing building and infrastructure projects.

If a client alleges that the budget overrun was caused by your negligent cost management, inadequate procurement processes or failure to manage scope changes, PI insurance covers the defence costs and any damages. However, budget overruns caused by factors outside your control, such as market price increases or client-directed changes, are not your professional liability.

If a client claims that project delays were caused by your negligent management, poor scheduling or failure to coordinate contractors, PI insurance covers the defence costs and damages. However, many policies contain exclusions for contractual liability that exceeds what you would owe at common law, so check your policy's treatment of liquidated damages clauses.

Proportionate liability legislation in Australia means that in certain claims, each party is only liable for the proportion of loss attributable to their own fault, rather than being jointly and severally liable. This is particularly relevant in multi-party construction disputes. Your PI policy should be designed to work within this framework.

Contact Shielded Insurance for a free comparison quote. We source PI cover from domestic markets, specialist underwriting agencies and Lloyd's of London syndicates. You will need to provide details of your revenue, project types, typical project values, client base and claims history. The process is straightforward and typically takes one to two business days.

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.