Professional indemnity

Protect your business against professional indemnity claims

What is CGU professional indemnity insurance?

Professional indemnity insurance provides you and your business with protection against claims for financial loss, bodily/personal injury or property damage arising from an act, error or omission in the performance of professional services

If you’re in any kind of profession that gives advice or provides a service, for example: advertising agencies, management consultants or consulting engineers, professional indemnity is a necessity. Your business is your livelihood, so protecting it is paramount.

CGU professional indemnity insurance can cover:

This is a summary only, the full details of what is and is not covered, please read the Professional Indemnity Product Disclosure Statement.

Get a professional indemnity quote

Professional Indemnity is offered as part of our Professionals and Consultants insurance and our IT Professionals insurance.  We also offer professional indemnity for other occupations through insurance advisers. Our business insurance specialists can help answer your professional indemnity questions, or help you find an insurance adviser to work out the right cover for your needs. 

Professional indemnity FAQs

  • What is professional indemnity insurance?

    Professional indemnity insurance provides you and your business with protection against claims for financial loss, bodily/personal injury or property damage arising from an act, error or omission in the performance of professional services.

  • Why do I need professional indemnity insurance?

    If you’re in any kind of profession that gives advice or provides a service, for example: advertising agencies, management consultants or consulting engineers, professional indemnity is a necessity. Your business is your livelihood, so protecting it is paramount

    On occasion it’s possible in your profession to unintentionally breach privacy or confidentiality, omit information, make an error of judgement or provide the wrong advice. A simple act, error or omission can lead to a claim against your business, therefore making it vital to protect yourself, your business, and reputation.
      
    Professional Indemnity Insurance protects you from bearing the full cost of these claims and disputes, and from the time and resources they consume.

    The threat of claims and litigation is very real and can potentially bankrupt businesses, small or large. It may seem like a distant possibility, but legal action often arises from an unforeseen event to completely disrupt businesses.

  • Who needs professional indemnity insurance?

    Professional indemnity insurance is particularly relevant to those in professions which provide advice for a living. A professional can be anyone who "provides advice or services of a skilful character according to an established discipline". 

    A claim for compensation as a result of incorrect professional advice or services, whether your business is big or small, can set back your business severely.

  • What does professional indemnity insurance cover me for?

    CGU professional indemnity insurance covers your business for:

    Some things you're covered for

    • Civil liabilities including (but not limited to) breach of duty, defamation, loss of or damage to documents, infringement of intellectual property and more
    • Bodily injury and property damage claims arising from the professional services covered by the policy
    • Claims investigation costs (i.e. costs of investigating, defending and settling claims

    This is a summary only, the full details of what is and is not covered, please read the Professional Indemnity Product Disclosure Statement

  • What are some of the things professional indemnity insurance doesn’t cover me for?

    Things professional indemnity insurance doesn’t cover you for include:

    • Claims and circumstances known before the period of insurance
    • Intentional damage
    • Insolvency of the insured
    • Contractual liability
    • Terrorism

    This is a summary only, the full details of what is and is not covered, please read the Professional Indemnity Product Disclosure Statement

  • How much professional indemnity insurance do I need?

    Every business is different, and there is no ‘one size fits all’ rule for how much professional indemnity insurance your business needs. 

    Sometimes the amount of professional indemnity insurance you need will be dictated by the contracts you work on – for example, some clients will require you to hold a minimum amount of professional indemnity insurance to work for them.

    Professional indemnity claims can be very costly, so it is important that you choose a level of cover that will financially protect you and your business should you need to make a claim.

    CGU offers four levels of professional indemnity cover which can be purchased from us directly:

    • $1 million 
    • $2 million
    • $5 million
    • $10 million 
  • What sorts of claims are covered by professional indemnity insurance?

    Some examples of scenarios that might be covered under your professional indemnity insurance would be:

    • A fitness instructor providing advice which led to their client becoming injured
    • A tax agent providing incorrect advice which led to a client's business losing money
    • A graphic designer creating a new logo that was similar to a copyrighted design, which led to legal proceedings against their client

    This are examples only, for the full details of what is and is not covered, please read the Professional Indemnity Product Disclosure Statement

  • What is the difference between public or products liability and professional indemnity?

    Both public liability and professional indemnity insurance are designed to protect your business against claims resulting from accidents or injuries that occur as result of your business activities, as well as accidental damage to property owned or controlled by someone else.

    They key difference is that public liability insurance doesn’t cover losses arising from you providing professional services or advice to clients.

    Professional indemnity insurance specifically protects you and your business from claims of financial loss arising from an act, error or omission in the performance of advice or services you are providing in a professional capacity. 

    If a client disputes the services or advice you have provided them in a professional capacity, professional indemnity insurance will cover the cost of defending their claim in court, along with paying compensation or damages up to the limit you have selected. 

Understanding professional indemnity

What is defamation?

Find out how professional indemnity insurance helps protect you against defamation claims on the CGU Blog.

Need specialist professional indemnity insurance?

Do you have more complex or specialist professional indemnity needs, like medical malpractice or multimedia liability? Visit the Professional Risks page for more information about our specialist and complex products that are available through insurance brokers and agents.

Professional risks