Compare at least three insurers to see how pricing and cover limits differ for your industry and business size
Check if your profession legally requires professional indemnity insurance before starting work or signing contracts
Consider policies with run-off cover to protect yourself from claims even after you stop trading or retire
How much does professional indemnity insurance cost?
That's tough to say. It'll depend on a few different factors including the type of work you do, your annual revenue, and the level of cover you'd like.
We put every effort into ensuring information on Finder is accurate. This article was reviewed by Justine McLean from our Editorial Review Board as part of our fact checking process.
In 2025, we requested three different quotes from six different insurers, to get a picture of how much professional indemnity insurance might cost for a self-employed tax agent with $150,000 annual revenue. Here's what we found:
Insurer
Cost for $250,000 cover
Cost for $500,000 cover
Cost for $1,000,000 cover
Excess payable on claims
$684.75
$742.50
$858.00
$1,000
$511.50
$511.50
$546.15
$0
$1,074.56
$1,135.20
$1,377.75
$0
$430.65
$430.65
$511.50
$2,500
$563.78
$695.52
$869.55
$1,000
$736.73
$800.25
$896.12
$750
Average cost
$667.00
$719.27
$843.18
$1,292
Data was taken from our quoting engine in February 2025 based on a sole trader tax agent looking for $250,000 in professional indemnity insurance cover.
What's covered by professional indemnity
Professional indemnity is designed to protect you and your business if you ever make a mistake at work and the client sues. It'll also protect you if you didn't make the mistake, but you have an unhappy client who claims you did. But it won't protect against everything.
Covered
Breach of duty. You fail to lodge a client's important paperwork in time.
Breach of privacy or confidentiality. You accidentally share a customer's personal information online.
Defamation, libel or slander. You publish something online which damages a person's reputation.
Intellectual property infringement. You accidentally breach copyright laws in a design you give to a client.
Legal fees. The legal costs of investigating, defending and settling claims.
Reputation repair. Public relations costs deigned to repair your reputation if it's damaged.
Loss or damage to documents. A tax agency is severely damaged along with receipts given by clients.
Not Covered
Issues known prior to insurance. You receive a complaint from a customer then take out cover
Criminal conduct. You use your client's information to open a credit card.
Damage to property. You visit a client's home and accidentally break something.
Intentional acts. You use below-standard materials for a house you are working on.
Fraud and dishonesty. You claim to have qualifications that you do not.
Fines and penalties. If you are ordered to pay a fine, this is unlikely to be covered.
Bankruptcy. If your business goes bankrupt, your policy won't cover related claims.
Accidental injury. You construct a faulty wall which ends up collapsing on someone.
Key factors that will affect your quote
Professional indemnity insurance isn't one-size-fits-all. Lots of different factors are taken into account when calculating the price you pay. They include:
Number of staff. The more staff employed at your company, the higher your premium will be. That's because as the number of employees grows, so does the chance of human error.
Annual turnover. Businesses with a lower annual turnover will enjoy lower premiums. That's because you face less financial risk than others.
Type of client. If you work on large-scale, multi-million dollar projects, your premiums will be higher than if your clientele is on the lower end of the spectrum.
Industry. Certain industries carry higher premiums as the potential cost of mistakes is higher. For example, a lawyer would face higher premiums than a graphic designer.
Claims history. Have you been sued before? If so, you'll likely face higher premiums than someone who hasn't.
Benefits. Not all policies are created equal. A more comprehensive level of cover will cost you more money.
Excess. The excess is the amount you pay first, if you ever have to claim. The higher the excess, the lower your monthly premiums.
Do I actually need professional indemnity insurance?
In some cases, yes.
Professional indemnity insurance is a legal requirement in many industries. These vary between states so it's worth double checking.
Professional indemnity insurance is typically a basic requirement in business contracts, especially if you are dealing with other companies or councils.
Professional associations and industry bodies often require their members to have professional indemnity insurance.
Some industries require professionals to have professional indemnity insurance before they receive full accreditation.
Even if you don't technically need professional indemnity insurance, it's still a good idea to consider it.
No matter how careful you are, there is always the risk of error. Further, illegitimate claims can also end up costing you a lot of money, not to mention your reputation.
Professional indemnity insurance ensures your business can continue to operate despite having to cover legal costs.
Case studies for specific occupations
Here are some real life examples of professional indemnity insurance claims:
Accountant
An accountant advised their client that an expense was tax-deductible. The ATO investigated the claim and fined the client. The accountant was liable to pay legal fees to defend the claim and pay compensation to the client. Having professional indemnity insurance ensured those costs were covered.
Building inspector
A building inspector completed a pre-purchase report for a client buying a new house. It was later found that there was significant structural damage in the roof that was not identified in the report. The client sued the building inspector for damages. The building inspector's expenses were covered by their PI insurance policy.
Event manager
An event coordinator double-booked a room at a function centre, resulting in the cancellation of one of the events. The client whose event was cancelled made a claim seeking damages for lost business and to recoup expenses. The events coordinator was able to cover these costs because they had a PI policy in place.
Why price isn't everything
We understand that price is important - but it shouldn't be the only factor you look at when choosing professional indemnity insurance. Keep an eye out for insurers that:
Understand your industry and manage policies of other similar businesses.
Can produce evidence of favourable outcomes for clients
Are approved by your industry's governing body or membership association
Have clear policy guidelines regarding inclusions and exclusions
Take a personal approach and assess your business specifically
It is important to get a number of quotes and talk to a variety of insurers before committing to any particular policy.
Some important things to understand
When looking for professional indemnity insurance, you'll come across some terms you might not have heard of before. We've cleared them up for you here.
Term
What it means
Claims made
If you switch insurers after the event occurs, but the claim is made under a new insurer, the new insurer must handle the claim.
Run-off cover
Run off cover extends the policy after you have stopped trading. For example, if someone makes a claim after you've sold your business or retired.
Fidelity insurance
An additional cover that protects you against dishonest acts by employees. It can be taken out as a separate policy or included as an extension.
Policy retroactive date
The date from which your professional indemnity insurer will cover you. Typically, the retroactive date will either be unlimited or specified.
An unlimited retroactive date means the insurer will cover claims regardless of when they occurred. A specific retroactive date will only offer cover after a specific date.
Cost inclusive
Legal defence costs are included in the maximum amount your insurer will pay for a claim.
Cost exclusive
Legal defence costs are covered in addition to the limit of indemnity, which means it could be a more desirable option.
Talk to a broker about professional indemnity insurance
Professional indemnity insurance is complicated. Fill out the form below, to receive free advice from a broker.
Receive a Quote for Business Insurance
If you are ready to speak with a consultant about different business insurance options available, simply enter your details in the form. Keep reading if you want to learn more about the different types of cover available.
No, professional indemnity insurance is not legally required for all businesses but is mandatory for certain professions like doctors, lawyers, accountants and architects. Many industry bodies and government contracts also require proof of cover before you can operate or win tenders.
No, most standard Australian professional indemnity policies only cover work performed within Australia and New Zealand unless you have specifically requested a jurisdictional extension. If you provide services to international clients you should check if your policy includes a worldwide cover extension which often excludes the USA and Canada.
A retroactive date is a point in time before the policy start date after which your professional activities are covered for claims made today. This is essential for professional indemnity insurance because it is a 'claims-made' policy, meaning it protects you against current claims arising from work performed in the past.
Run-off cover provides insurance protection for claims made against you after you have retired or closed your business for work performed while you were still trading. Because professional indemnity insurance must be active at the time a claim is lodged, you need run-off cover to protect yourself against delayed allegations of negligence.
It depends on how your specific policy is written. Many Australian policies are 'costs-inclusive,' meaning legal fees chew into your total limit of indemnity, reducing the amount left to pay compensation. However, many SME policies are written as 'costs-in-addition,' which means the insurer covers your legal representation expenses on top of your primary limit. You must check your policy schedule to confirm which structure applies to your cover.
Yes, professional indemnity insurance can cover work performed by subcontractors provided they are working under your direct supervision and you have disclosed their use to your insurer. However, many policies require your subcontractors to maintain their own insurance and may exclude them if they operate as independent entities without their own cover.
Sources
Was this content helpful to you?
Thank you for your feedback!
To make sure you get accurate and helpful information, this guide has been reviewed by
Justine Mclean, a member of Finder's
Editorial Review Board.
Alex Reid is Finder’s business insurance cadet. He has a Master of Marketing from the University of Technology Sydney, with a background in business and sales. When not writing about business insurance for Finder he's a keen scuba diver, recently completed his 200th hour underwater and his PADI Divemaster certification. Before working at Finder he lived in Hangzhou China, where he studied Mandarin and Chinese culture.
See full bio
I own an Australian registered company and I will be undertaking work for an Australian mining company in Burkina Faso. Part of the task is to provide a medic / trauma nurse at the mine site. I am looking for insurance to cover the medics professional indemnity.
Finder
ShirleyJanuary 14, 2014Finder
Hi Craig,
Thanks for your comment.
Unfortunately at the moment we don’t compare professional indemnity insurance.
When you start comparing policies from different insurance providers, please remember to address all the dot points in the ‘How do I compare professional indemnity insurance?’ section of this article.
Cheers,
Shirley
SaravananJanuary 2, 2014
I will be working as an aircraft engineer on night shift and will be moving there for the job. Am i eligible for Professional Indemnity Insurance
Finder
MarcJanuary 3, 2014Finder
Hello Saravanan,
thanks for the question.
Personal indemnity insurance is offered on a case-by-case basis. Getting insured will depend on how you’re employed and the nature of the role. There are specialist providers who insure aviation workers so be sure to do a quick internet search and compare these providers.
Why do accountants need professional indemnity insurance? Why do they need public liability insurance? This article looks at the many risks that accountants are exposed to in the course of doing business and will hopefully convince every accountant who reads it that PI Insurance is not something they can afford to be without.
Nursing is a vital profession in hospitals and nursing homes around Australia, but the people who work as nurses are exposed to a unique range of risks. If a nurse were to make a mistake or an error of judgement — for example administer the wrong medication, fail to follow a doctor’s instructions or give incorrect advice to a patient — they could find themselves the subject of a lawsuit for a breach of their professional duty.
This is where professional indemnity insurance shows its worth. This type of cover offers much-needed financial protection for nurses against claims of negligence or malpractice. It covers the cost of your legal defence as well as any compensation you may be legally required to pay to a third party. Public relations costs to repair your professional image are also covered by professional indemnity policies.
In order to find the right professional indemnity insurance policy for you, compare policies at finder.com.au and seek advice from colleagues. Compare quotes from a number of insurers and seek help from an insurance consultant if required.
Want protection against liability and negligence claims? Find out why these two forms of cover are essential for many businesses.
Important information about this website
Finder is a comparison service. We do not compare every product or every provider in the market.
We make money through commercial arrangements with some of the providers on this site. Products marked 'Sponsored', 'Promoted', 'Featured' or 'Advertisement' appear as a result of a commercial arrangement.
Our editorial content, product reviews and any 'Top Pick' designations are prepared independently of these commercial arrangements.
The default order of products in our tables can be influenced by commercial arrangements. You can re-sort or filter using the controls above each table.
Some content on this site may be generated or supported by AI tools. You should verify details directly with the provider.
Finder is one of Australia's leading comparison websites. We are committed to our readers and stand by our editorial principles.
Our comparison service does not include every product or every provider in the market. Some product issuers offer their products under multiple brands or through associated companies. Where we can, we identify the underlying issuer so you can compare like with like, but you should always check with the provider directly to confirm which brand you are dealing with.
Finder is a comparison website and an intermediary. We are not a product issuer and we do not provide personal financial or credit advice. When you click a link to a product, or apply for a product through our site, you deal directly with the product issuer. We may receive a referral fee, commission or other payment from the issuer if you click through, apply or take out a product. We describe these arrangements in more detail under 'How we make money' below.
Product features, fees, terms and eligibility criteria are set by the product issuer and may change. We rely on information supplied by issuers when we present product details on our site. Before you apply for or take out any product, you should confirm the details directly with the issuer.
We earn revenue from Finder in four principal ways:
Referral fees and commissions. When you click a product link, complete an enquiry form or apply for a product through our site, we may receive a referral fee, commission or other payment from the product issuer. We may also receive payment based on the volume of leads or conversions we send to an issuer.
Sponsored placements. Products marked 'Sponsored', 'Promoted', 'Featured' or 'Advertisement' appear as a result of a commercial arrangement between Finder and the issuer. These labels always indicate a paid placement. We do not use them for editorial choices.
Display advertising. Banner advertising, newsletter advertising and similar display ads on our site are paid by advertisers.
Content sponsorship. Some articles, videos and social media posts are sponsored by an issuer and are clearly labelled as such.
Our editorial opinions, product reviews and any 'Top Pick' designations are prepared independently of these commercial arrangements. A 'Top Pick' is an editorial choice made by our writers and editors based on the criteria described on each comparison page. A 'Top Pick' is not a personal recommendation and does not mean the product is appropriate for your circumstances.
If you would like to know whether we have a commercial arrangement with a specific product issuer, please contact us.
When products are grouped in a table or list, the default order can be influenced by commercial arrangements we have with product issuers. In some categories, sponsored or featured products appear in the top positions of the table by default, and are always labelled as such.
Other factors that influence default order include price, fees and features, and (where relevant) our editorial view of the product.
You can re-sort every comparison table using the controls above the table. You can filter by product features that matter to you. The order you see after re-sorting or filtering is not influenced by commercial arrangements.
Some content on this site is generated or supported by artificial intelligence tools, including our AI-powered assistant FinderBot. AI-generated content may contain errors. Please verify important information directly with the product issuer before making a financial decision. For more information about FinderBot, see the FinderBot Terms of Use and FinderBot Privacy Collection Notice.
Please read our website terms of use and privacy policy for more information about our services and our approach to privacy.
We update our data regularly, but information can change between updates. Confirm details with the provider you're interested in before making a decision.
Our goal is to create the best possible product, and your thoughts, ideas and suggestions play a major role in helping us identify opportunities to improve.
I own an Australian registered company and I will be undertaking work for an Australian mining company in Burkina Faso. Part of the task is to provide a medic / trauma nurse at the mine site. I am looking for insurance to cover the medics professional indemnity.
Hi Craig,
Thanks for your comment.
Unfortunately at the moment we don’t compare professional indemnity insurance.
When you start comparing policies from different insurance providers, please remember to address all the dot points in the ‘How do I compare professional indemnity insurance?’ section of this article.
Cheers,
Shirley
I will be working as an aircraft engineer on night shift and will be moving there for the job. Am i eligible for Professional Indemnity Insurance
Hello Saravanan,
thanks for the question.
Personal indemnity insurance is offered on a case-by-case basis. Getting insured will depend on how you’re employed and the nature of the role. There are specialist providers who insure aviation workers so be sure to do a quick internet search and compare these providers.
I hope this helps,
Marc.