Professional Indemnity Insurance Guide
Professional Indemnity Insurance Guide — guidance and information from Ipswich Insurance Brokers, a Steadfast and CBN member broker.
What is professional indemnity insurance?
Professional indemnity (PI) insurance covers claims alleging errors, omissions or negligence in professional advice or services. It is relevant for consultants, engineers, accountants, designers, IT professionals, surveyors, project managers and any business where a client could suffer a financial loss based on advice or work performed.
What this cover may include
Cover availability and terms vary between insurers and depend on individual circumstances. Subject to acceptance, a policy may include:
- Claims alleging negligence, errors or omissions in professional services
- Legal defence costs (often the largest component)
- Breach of professional duty
- Intellectual property infringement (where included)
Common exclusions to be aware of
The following are commonly excluded under standard policy wordings. Specific exclusions vary between insurers — always review the Product Disclosure Statement before purchasing.
- Bodily injury and property damage (public liability covers these)
- Dishonest or fraudulent acts
- Prior known circumstances or incidents
- Work performed before the retroactive date (run-off cover required on cessation)
How to arrange professional indemnity insurance through Ipswich Insurance Brokers
- Submit a quote request or contact us directly to discuss your requirements
- We collect relevant information and approach appropriate markets
- We compare policy terms and conditions across insurers and present options
- We arrange binding and issue documentation once you confirm instructions
As a Steadfast and CBN member broker, Ipswich Insurance Brokers has access to a broad panel of approved insurers. We act on your behalf — not on behalf of any insurer. Our remuneration is disclosed in our Financial Services Guide.
General guidance — not personal advice
The information on this page is general guidance only. It does not constitute personal advice and does not take into account your individual circumstances. Before arranging any insurance, you should consider your specific needs and read the relevant Product Disclosure Statement. Our Disclaimer applies to all content on this site.
Frequently asked questions
Does PI insurance cover every type of professional service?
Not necessarily. Insurers underwrite PI by profession and activity type. Some activities — certain financial services, legal advice, medical advice — require specialist PI products. We identify appropriate markets for your specific profession during placement.
What is the retroactive date and why does it matter?
The retroactive date is the earliest date from which work performed is covered under the policy. Claims arising from work performed before the retroactive date are not covered. When switching insurers, maintaining retroactive date continuity is important — a gap in retroactive dates creates uncovered periods. We manage this specifically during renewal.
Do I need run-off cover when I stop practising?
Yes. PI policies are written on a claims-made basis — the policy in force when the claim is made responds, not the policy in force when the work was performed. When you cease practice, run-off cover (typically a fixed period such as 7 years) protects against claims that arise after you stop trading. Contact us well before ceasing practice to arrange appropriate run-off.
What to look for when comparing professional indemnity insurance policies
When reviewing options, the following points are worth considering. This is general guidance — the right approach depends on your specific situation.
Confirm the retroactive date — this determines how far back in time the policy covers your work. Review the policy limit in the context of your largest contract or engagement. Check what professional activities are covered and whether any are excluded. Confirm that run-off cover is available when you cease practice. Ensure the ‘wrongful act’ definition in the policy encompasses your specific professional activities.
For more detailed information, see our Professional Indemnity Insurance page.
About Ipswich Insurance Brokers
Ipswich Insurance Brokers is a Steadfast and CBN member broker operating under an Australian Financial Services Licence. We act on your behalf — not on behalf of any insurer. We compare options across a broad panel of approved insurers, arrange cover, provide documentation and support claims. We are remunerated by commission from the insurer, disclosed in our Financial Services Guide. All information on this page is general guidance only — see our Disclaimer. If you are unsure whether your current PI policy is structured correctly — particularly the retroactive date continuity — contact us for a review before the next renewal date.
Professional indemnity is a claims-made product — the policy in force when the claim is made responds. This makes continuous cover essential for practising professionals and run-off cover necessary on cessation of practice. Contact us well before ceasing practice to avoid gaps. Our Professional Indemnity Insurance page has further guidance on placement and run-off arrangements.