Quantity Surveyor Professional Indemnity Insurance

Small QS practices focused on residential work typically pay between $2,000 and $6,000 per year for PI cover with limits of $1 million to $5 million. Larger firms advising on commercial and infrastructure projects may pay between $6,000 and $25,000 per year depending on revenue, maximum project value and claims history.

Yes. Tax depreciation schedule preparation is a core QS service and claims arising from errors in these schedules are covered under a standard QS PI policy. Given the ATO's increased scrutiny of depreciation claims, ensuring accuracy and compliance with current legislation is critical to managing this risk.

Yes, provided your PI policy covers superintendent and contract administration duties. This must be declared as a service you provide when applying for cover. Superintendent roles carry specific risks due to the adversarial nature of contract disputes, variation assessments and extension of time determinations.

If a client suffers financial loss because your cost estimate was materially inaccurate, they may bring a professional negligence claim against you. Your PI policy covers the legal defence costs and any damages awarded. The key question in such claims is whether your estimate met the standard of care expected of a competent quantity surveyor at the time it was prepared.

This depends on the value of projects you advise on. Residential-focused practices typically select $1 million to $5 million. Firms working on commercial projects should consider $5 million to $10 million. QS practices advising on major infrastructure or high-value developments may need $10 million to $20 million. Check the contractual requirements of your major clients.

Yes. If you certify a progress claim and a dispute arises over the certified amount, whether from the contractor alleging underpayment or the client alleging overpayment, your PI policy covers the defence and any resulting liability. Progress claim disputes are a common source of claims, particularly on projects where the contractor becomes insolvent.

Yes. Prior claims will increase premiums and may result in higher excess levels, but QS PI insurance remains available from specialist insurers experienced in the construction professional sector. At Shielded, we access a broad market including specialist underwriting agencies and Lloyd's of London syndicates to find competitive options for firms with claims history.

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.