The Finance AlgorithmTFA

Professional Indemnity Insurance Calculator

AI + Live Data

Estimate professional indemnity insurance costs for Australian professionals. Protect against claims of negligence, errors, and bad advice.

Free to useNo data storedReal-time dataAI insightsUpdated: February 2026

Professional indemnity (PI) insurance protects you against claims of negligence, errors, omissions, or bad advice that cause your client financial loss. In Australia, PI insurance is mandatory for many professions (lawyers, financial advisers, real estate agents, engineers, architects) and increasingly required by clients in contracts. Even if not mandatory, a single claim without cover could bankrupt a small practice.

Enter Your Details

Enter Your Details

Your profession determines risk level and premium

$

Total revenue — more revenue = higher exposure = higher premium

How much cover you need — check your industry requirements and contracts

More people = more exposure to errors

Past claims increase premiums significantly

Covers claims arising from work done before the policy start date

Real-World Examples

IT Consultant, Solo

Solo IT consultant, $180,000 revenue, $2M cover, no claims.

Estimated premium: $800-$1,500/year. If a software implementation error causes a client $500,000 in lost revenue, the claim + legal defence could easily exceed $700,000. Without PI, that comes from your personal assets.

Small Accounting Firm

5-person accounting firm, $800,000 revenue, $5M cover, no claims.

Estimated premium: $4,000-$8,000/year. Mandatory for Tax Agents. A tax return error leading to ATO penalties and interest for a client could trigger a $200,000+ claim. PI is non-negotiable.

Frequently Asked Questions

Glossary

Professional Indemnity (PI)
Insurance covering claims of negligence, errors, or omissions in professional services that cause financial loss to clients.
Claims Made Policy
A policy that covers claims made during the policy period, regardless of when the work was done. Requires continuous cover without gaps.
Run-Off Cover
Extended PI cover after you stop practising, protecting against claims from past work. Typically needed for 7+ years.

Disclaimer: This calculator provides estimates only and should not be relied upon for financial decisions. Interest rates, fees, and policies change frequently. Always verify information with lenders directly. This is general information, not personal financial advice. Consider seeking advice from a licensed mortgage broker or financial advisor.

Last updated: February 2026

How to Use
  1. Select your profession/industry.
  2. Enter your annual business revenue.
  3. Choose the cover limit you need.
  4. Add your number of employees.
  5. Indicate any claims history.
  6. See estimated premium range and recommended cover.
Key Information
  • PI insurance is mandatory for: lawyers, financial advisers (AFSL), accountants (Tax Agent), real estate agents, engineers (in some states), and architects.
  • PI insurance is 'claims made' — it covers claims MADE during the policy period, regardless of when the work was done (if retroactive cover is included).
  • After you stop trading or retire, you need 'run-off' cover for 7+ years — past clients can still claim.
  • Premiums typically range from $500-$5,000/year for small practices; $5,000-$50,000+ for larger firms.
Pro Tips
  • Check your registration body's minimum requirements — some mandate $2M+ cover.
  • Always include retroactive cover back to your first day of practice — claims can arise years after work was completed.
  • Many client contracts now require PI certificates before engaging you — losing a contract because you don't have cover is expensive.
  • Bundle PI with public liability and cyber liability for a comprehensive business insurance package.
Avoid These Mistakes
  • Thinking PI is the same as public liability — PI covers financial loss from bad advice/errors; public liability covers physical injury/property damage.
  • Letting the policy lapse — PI is 'claims made', so gaps in cover mean past work isn't protected.
  • Not getting enough cover — a $500,000 policy might not cover a single large claim including legal defence costs.
  • Not disclosing all services — if you expand into new services not listed on the policy, claims may be denied.
Ask AI anything