Tax Agent PI Insurance

Premiums typically range from $800 to $5,000 per year for sole practitioners and small tax practices, depending on revenue, services offered, client base, limit of indemnity and claims history. Larger practices with broader service offerings and higher revenue will pay more. Contact Shielded Insurance for a quote specific to your practice.

The TPB requires PI insurance that covers civil liability arising from the provision of tax agent services. The minimum coverage amount is based on practice size and revenue. The policy must remain in force throughout your registration period and must meet the TPB's specific requirements regarding policy terms and coverage scope. Shielded Insurance can confirm the requirements for your practice.

Yes. If your client incurs ATO penalties and interest charges as a result of your negligent advice or lodgement error, and they make a claim against you for that financial loss, PI insurance covers the defence costs and damages. This is one of the most common claim types for tax agents.

It depends on your policy. Standard tax agent PI policies may not automatically cover SMSF advisory services, particularly if they involve investment advice or trustee guidance that crosses into financial planning territory. If you provide SMSF services, ensure your policy explicitly covers this work. Shielded Insurance can review your policy to confirm.

Some tax agent PI policies include cover for the costs of responding to TPB investigations and disciplinary proceedings, while others exclude this or offer it as an optional extension. Given the potential consequences of a TPB investigation, this is an important coverage to check when comparing policies.

You need run-off cover to protect against claims made after you stop practising that relate to work done during your active years. Tax errors can take several years to surface, particularly if the ATO conducts a review of prior year assessments. The TPB expects practitioners to maintain appropriate run-off cover. Arrange this before your final policy expires.

Yes. While a TPB complaint or prior claim will affect your premium and the terms offered, cover is still available. Shielded Insurance works with domestic markets, specialist underwriting agencies and Lloyd's of London syndicates to find options for tax agents with complex histories, including prior claims and disciplinary matters.

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.