Professional Indemnity Insurance (PI) protects professionals against claims made against them by clients for perceived negligence or an error that has led to financial loss or damages to that client. Professional Indemnity Insurance for Small Businesses is available to professionals in a vast range of professions, and covers any damages payable and the costs of defending such claims.

Who needs Professional Indemnity Insurance for Small Businesses?

The definition of ‘professional’ has widened much over the past decade or so, and now includes many industries which it did not include before. Professionals are held to higher standards than so-called ‘ordinary workers’ and therefore must ensure that they uphold professional standards at all times.

`Professional’ includes many various industries today, including but not limited to:

  • Accountants
  • Allied Health Professionals
  • Architects
  • Beauty, Massage & Physio Professionals
  • Bookkeepers & BAS Agents
  • Consultants
  • Councillors  & Coaches
  • Education Workers
  • Engineers
  • Finance & Mortgage Brokers
  • Health Workers
  • IT Professionals
  • Marketing & Graphic Designers
  • Nurses
  • Real Estate Agents
  • Recruitment Consultants
  • Registered Migration Agents
  • Tradesmen
  • Tax Agents


If you are in business for yourself or have a small business that employs any of the above professionals, you need to carry Professional Indemnity Insurance for Small Businesses.

Why do I need Professional Indemnity Insurance for Small Businesses?

It is a fallacy that only large businesses or corporations need carry professional liability insurance. More and more professionals are now either working for themselves or smaller companies; these companies stand just as much chance of being sued for damages.

All small businesses that provide services or advice to third parties should carry PI; even not-for-profit organisations should have professional indemnity insurance cover if they have one or more professionals that provide services or advice.

Any professional who provides services to a third party is seen as an expert by that third party, and thus, open to claims being made against them. This insurance will provide protection against claims for financial loss, injury or damages arising from an act, error or omission in the performance of the professional services rendered.

Professional indemnity claims for malpractice, negligence, professional misconduct, or breach of duty take a lot of time and money to defend, time which you as a professional do not have. The claims themselves can also run into hundreds of thousands of dollars, which could ruin your business.

Rather than asking “Do I need Professional Indemnity Insurance for Small Businesses” work out what it would cost if a claim is made against you and you do not have PI.