How much does Professional Indemnity Insurance cost?
On average, a Professional Indemnity (PI) insurance policy is $103 per month* with BizCover.
The cost of your Professional Indemnity insurance policy is influenced by the types of occupations it provides cover for. The riskier the occupation, the higher the cost.
Other key factors that play a part in determining the cost are:
- Your business turnover and size.
- The amount of insurance cover you require.
- The individuals being covered – are they qualified for the job they are performing, and do they have a previous history of claims?
- Your individual claims history.
What is Professional Indemnity insurance?
Professional Indemnity insurance offers protection against claims for businesses that provide specialist services or advice. It provides cover should any legal action be taken against that business as a result of a client suffering a loss as a result of that service or advice.
What is the average cost of Professional Indemnity insurance by industry?
The average cost of your premium will vary depending on the kind of risks associated with your business. The higher the risk that your services or advice could lead to a claim, the higher the premium.
| Industry | Average Monthly Premium* |
|---|---|
| Architecture, Engineering & Technical Services | $210 |
| Property and Real Estate Agents | $175 |
| Manufacturing | $113 |
| Trades | $112 |
| Consultancy Occupations | $88 |
| Accounting, Bookkeeping and Taxation | $62 |
How much do consultants pay for Professional Indemnity insurance?
Premiums can vary greatly from one trade-based occupation to another. Here is the starting price for 10 popular consulting occupations when comparing quotes for Professional Indemnity insurance.
| Occupation | Starting From^ |
| Management Consulting | $69.19 |
| Migration Agency | $65.08 |
| Human Resources Consulting | $69.19 |
| Education Consulting | $65.08 |
| Employment Agency Services / Recruitment | $68.14 |
| Environmental Consulting | $160.42 |
| Occupational Health and Safety (OH&S) | $68.14 |
| Communications Consulting | $68.14 |
| Research and Policy Advisory Consulting | $45.83 |
Does the size of my business affect the premium?
Yes, the higher your revenue and the more staff you employ, the higher the cost of your policy. BizCover customers with no employees pay an average of $83 per month* for their Professional Indemnity insurance. For small businesses with three employees the average cost of their policy increased to $147 per month* and for those with five employees it increases to $189 per month*.
This is because a higher annual turnover indicates a greater volume of work. And the more work you have, the more chances there are of something going wrong and a claim being made against you. Similarly, with more staff comes more chances for errors, accidents, injuries, or claims being made by employees against the business.
Does the level of cover affect the premium?
Yes, the higher the level of cover you choose, the more money you will pay for your premium. However, it should be noted that the increments in which you increase your cover by isn’t reflective of the increments in price. For example, if you double your cover from $1 million to $2 million it doesn’t double the cost of the monthly premium.
What is the average monthly cost of Professional Indemnity insurance by level of cover?
| Coverage level | Average Monthly Premium# |
|---|---|
| $250,000 | $38.60 |
| $1 Million | $73.76 |
| $2 Million | $99.12 |
| $5 Million | $127.39 |
| $10 Million | $143.34 |
When deciding on how much cover you need there are a number of things to consider, such as:
- Legislative and industry association requirements: Some types of occupations require you to hold a set minimum amount of cover.
- Contract size: If you frequently work on multi-million-dollar projects, you may want to consider a higher premium compared to someone who works with smaller-scale organisations.
- Staff numbers: Consider a higher cover limit if you employ a number of staff. In some instances, you could find yourself in a situation where you face multiple claims at once from different employees.
*Customer Average Monthly Payment Report is based on 1 July 2024 to 30 June 2025[CB5.1] and presented as a guide only. It may not reflect pricing for your particular business, as individual criteria will apply.
