Who Needs Professional Indemnity Insurance?

If you give advice, provide a service, or make professional recommendations as part of your business — you could be at risk of being sued if something goes wrong. 

That’s where Professional Indemnity (PI) Insurance steps in.

Professional Indemnity insurance typically covers:

• Legal defence costs (even if you did nothing wrong)

• Compensation or damages awarded to a third party

• Breach of duty or negligence in your service or advice

• Mistakes or errors in reports, calculations, designs

• Defamation or misleading conduct (in some cases)

• Breach of intellectual property (limited and depending on policy wording)

Who does it cover?

Here are a few examples of who needs it:

• Consultants (Business, HR, IT)

• Designers (Graphic, Web, Interiors)

• Accountants, Bookkeepers & Financial Planners

• Engineers, Architects, Draftspeople

• Education & Training Professionals

• Health Professionals (Allied Health, Therapists)

• Real Estate Agents & Property Managers

• Marketing & Communications Specialists

In some sectors, Professional Indemnity (PI) insurance is mandatory by law or industry regulation, or even required in contracts. For example:

• Financial planners and accountants (regulated by ASIC or professional bodies)

• Engineers and architects often need PI to meet licensing or project requirements

• Consultants may be contractually required by clients to hold PI cover to secure work

A single claim — even if you did nothing wrong — can cost tens of thousands to defend. PI insurance helps cover legal costs, settlements, and your peace of mind. Many businesses buy PI insurance out of obligation, then realise its full value later.

Do Tradies Need Professional Indemnity Insurance?

Short answer: Usually, no. Here's why:

Professional Indemnity (PI) insurance is designed for people or businesses that give advice or professional recommendations—like consultants, accountants, engineers, or designers.

But if you're a manual trade (like a plumber, builder, electrician, landscaper), you're more exposed to physical risks—not advice-related claims.

That’s why tradies typically need:

• Public Liability Insurance – covers injury or damage you cause onsite

• Tools & Equipment Insurance – protects your gear from theft or damage

• Income Protection or Personal Accident – helps if you can't work due to injury

Unless you’re providing formal advice backed by a certification or report, PI cover probably isn’t needed — and we’d rather help you avoid paying for cover you don’t need.