How Much Professional Indemnity Cover Do Accountants Need?
PI limits aren’t just numbers—they’re stress levels. Set the limit too low and you’ll worry. Set it too high and you’ll overpay. Here’s a simple way to land on a sensible limit without second-guessing yourself for the next 12 months.
Start with your biggest credible exposure
What’s the largest financial impact your advice could reasonably create for a single client? Consider:
Engagement size and reliance (e.g., forecasts used for lending)
Complex areas (SMSFs, business sale support, valuations)
Contractual obligations (some clients mandate minimum limits)
If your biggest engagement has a plausible seven-figure exposure, a $1m limit is tight. If you regularly advise on transactions or SMSFs, $2m–$5m can be more realistic.
Use these practical bands
$500k–$1m: Micro firms, simple work, no mandated contract limits
$1m–$2m: Most small practices, varied compliance and advisory work
$3m–$5m: Higher reliance work, audits/SMSFs/valuations, or contract-required
They’re not rules—just a grounded starting point.
Factor in defence costs
Lawyering is expensive. Even weak claims can burn cash and attention. Good policies cover defence costs in addition to the limit or within it—structure matters. We’ll walk you through the wording so you know which applies.
Claims history isn’t a scarlet letter
Had an issue in the past? Disclose it clearly. Strong narratives and remediation steps often keep premiums and appetite sensible. Hiding history only backfires.
Premium expectations
Price moves with limit, services, fees, and claims. We’ll show options side-by-side so you can see how each extra million changes the premium and the risk comfort.
Annual sense-check (the 90–30–7 rule)
90 days out: sanity-check your limit against pipeline and any new service lines
30 days out: confirm contracts that specify limits; update your fee band
7 days out: final tweaks, no last-minute panic
Want to compare $1m vs $2m vs $5m? Request a side-by-side quote and choose with confidence.
