Tailored Professional Indemnity Cover to Safeguard Your Expertise

Unlike general insurance, professional indemnity cover operates strictly on a "claims-made" basis. This means your policy must be active and in force at the exact time the client makes a formal claim against you, regardless of when the actual work or mistake occurred. If you cancel your policy today, you cannot lodge a claim next month for a project you completed last year.

Retroactive cover is a feature within a PI policy that protects you against claims arising from work you performed in the past, before the current policy's start date. When setting up your cover, a Lesure broker will look to establish a "Retroactive Date" that aligns with when your business first started trading, ensuring there are no dangerous gaps in your protection history.

Because professional indemnity works on a claims-made basis, a client could theoretically sue you years after you finish a project or wrap up a contract. If you plan to retire, close down your business, or sell your company, Run-Off cover maintains an active safety net for a set number of years post-closure, protecting you from lagging lawsuits related to past advice.

The indemnity limit required depends heavily on your industry regulations, the size and nature of your corporate contracts, and the potential worst-case financial impact an error could have on your largest client. In Australia, standard limits generally start at $1 million and frequently scale up to $2 million, $5 million, or $10 million+. Many Australian corporate contracts will explicitly state the minimum PI limit you must hold to be eligible to work with them.

This dictates how your total payout limit is structured throughout the year: Any One Claim: The insurer will pay up to your maximum limit (e.g., $2 million) for each individual, unrelated claim brought against you during the policy period. In the Aggregate: The limit represents the total absolute pool of money available for all claims combined within that 12-month period. If you have two $1.5 million claims in one year under a $2 million aggregate policy, you will be short by $1 million for the second claim.

Standard professional indemnity policies generally focus on the actions of your direct employees. If a subcontractor makes a major error on a project you managed, the client will likely sue your business first. It is crucial to inform your Lesure broker if you utilize contractors so we can ensure your policy includes "Vicarious Liability" extensions, or verify that your subcontractors carry their own independent PI insurance.

When a professional negligence claim is made, legal costs can escalate quickly. A quality PI policy gives the insurer the "right to defend" you, meaning they will appoint and fund specialized, top-tier commercial lawyers to handle your case. "Choice of Counsel" is an option we can source that allows you to have a say in selecting the legal firm representing your brand.