Insurance + Risk Services

Professional Indemnity Insurance – Frequently Asked Questions

Why is PI insurance required?shutterstock_156031895

Professionals such as engineers are considered experts in their field, and as such are presenting themselves as having special skills or expertise on which members of the community can rely. This reliance attracts a duty of care.

If a professional engineer breaches their duty of care by making an error or omission, then those persons affected are legally entitled to claim damages against the engineer. Claimants seeking payment for damages can sometimes amount to millions of dollars.

What does PI insurance cover?

Professional Indemnity Insurance is designed to provide you and your business with financial protection against claims alleging loss as a result of your professional advice or service.

Professional Indemnity Insurance acts to insulate you against this financial exposure, even extending to cover your legal expenses in the defence of a potential claim.

Covered features can include:

  • Loss of documents
  • Reinstatement of Indemnity Limit
  • Advancement of costs and legal expenses
  • Defamation

Please note: These are some of the more common policy features, however please refer to your specific policy wording for inclusions, exclusions and terms and conditions.

How much cover do I need?

Determining a suitable level of Professional Indemnity cover can be complicated, as every business is different. Some key factors that may impact your insurance requirements are:

  • your business turnover,
  • the degree of risk inherent in the services and activities you provide,
  • your PI insurance claims history.

It is imperative that you carefully consider the level of cover, and the PI insurance policy that is best for you or your business. A common mistake made by many, is purchasing the bare minimum level of cover required. In the unfortunate event of a claim, being underinsured can have potentially devastating financial ramifications.

Ensure your level of PI Insurance cover is sufficient – speak with one of EngInsure’s qualified PI insurance specialists. EngInsure advisers can provide personal advice specific to your circumstances.

Where can I find out more?

For further information about securing Professional Indemnity insurance for you or your business, contact a member of the EngInsure Insurance & Risk Services team on 1300 854 251 or click to submit your online enquiry.


This insight article is not intended to be personal advice and you should not rely on it as a substitute for any form of personal advice. Please contact Whitbread Associates Pty Ltd ABN 69 005 490 228 License Number: 229092 trading as EngInsure Insurance & Risk Services for further information or refer to our website.