Solicitor & Lawyer Professional Indemnity Insurance

For sole practitioners and small firms, premiums under approved insurer or managed fund schemes typically range from $5,000 to $12,000 per year. Mid-size firms can expect premiums from $15,000 to $50,000 depending on fee revenue, practice areas and claims history. These figures relate to base-level cover - top-up or excess layer cover for higher limits is additional. Request a quote through Shielded for accurate pricing.

Minimum limits vary by jurisdiction but are typically $1.5 million to $2 million per claim for sole practitioners and small firms. Incorporated legal practices and larger firms may face higher minimums. Many firms carry cover well above the minimum to meet client contractual requirements.

Conveyancing errors are consistently the most common source of claims against solicitors in Australia. These include missed encumbrances, easement issues, incorrect settlement adjustments, failure to identify planning restrictions, and errors in mortgage documentation. Missed limitation periods are another frequent and costly claim type.

Yes. PI insurance is mandatory regardless of your area of practice. While criminal and family law typically generate fewer and lower-value PI claims than conveyancing or commercial work, errors can still occur - such as failing to file documents on time, incorrect advice on property settlements in family law, or failure to properly advise on appeal prospects.

Run-off cover provides protection against claims that arise after you cease practising or close your firm. Because PI insurance is claims-made, you need cover in place at the time a claim is made - not just when the work was done. Most state approved schemes provide some automatic run-off, but if you are retiring, merging or closing your practice, confirm the extent and duration of run-off protection.

Yes. Many firms purchase top-up or excess layer cover above the base policy provided through their state approved scheme. This additional cover is sourced from the broader insurance market through a broker. It is common for commercial law firms to carry total limits of $5 million, $10 million or more to meet client expectations and contractual obligations.

Approved PI policies typically include some cover for trust account shortfalls caused by dishonest employees, protecting innocent partners and the firm. However, deliberate fraud by the insured practitioner themselves is excluded. Separate fidelity insurance may be needed depending on the size and nature of trust account operations.

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.