Professional Indemnity for Sole Practitioners: What You Need to Know
Working solo has a lot going for it—control, flexibility, close client relationships. It also means the buck stops with you. If advice is questioned or a deadline slips, one claim can rattle your reputation and your cash flow. That’s why Professional Indemnity (PI) is non-negotiable for sole practitioners.
What PI actually covers (in plain English)
PI steps in when a client alleges your professional service caused a financial loss. That usually includes:
Alleged errors or omissions in advice or returns
Breach of professional duty
Misstatements, negligence, or defamation linked to your work
Defence costs (often the most expensive part), even if a claim is unproven
Policies aren’t identical. We focus on insurer wordings that consistently support accountants, not generic “professional services” catch-alls.
The compliance angle you can’t ignore
Most bodies (CPA, CA ANZ, IPA) require members in practice to hold PI that meets their minimums. Skipping or under-insuring risks disciplinary issues and jeopardises your right to practise. We help you tick the boxes without over-engineering the policy.
Choosing a sensible limit as a sole practitioner
Think of your limit as a shock absorber. Common starting points range from $1m to $5m, but the “right” number depends on:
Typical engagement size and complexity
Contractual requirements (e.g., audits, SMSFs, corporate work)
How concentrated your revenue is (one big client vs many small)
Any higher-risk services (valuations, forecasts relied on for lending, etc.)
Short rule of thumb: pick the highest limit that feels reasonable against your largest credible claim, then review annually.
Retroactive dates and why they matter
Your retro date is the “start line” for how far back the policy will respond to past work. If you’ve been practising for years, ensure the policy includes full prior acts, so an old engagement doesn’t fall through the cracks.
Excess, endorsements, and fine print
A lower premium with a sky-high excess can be false economy. We’ll balance the excess with your cash position and review common endorsements (contractual liability, principal’s liability, sub-consultants) so there are fewer surprises at claim time.
Indicative pricing bands (so you can plan)
Premiums vary by fee income, services, limit, and claims history. As a directional guide, many sole practitioners see competitive premiums at $1m–$2m limits. We’ll give you a clean, accountant-specific quote—no fluff, no filler.
How we make it easy
We gather the essentials once, place cover with our broker partner, and explain exactly what you’re buying. If you ever need to claim, you won’t be doing it alone—we advocate and coordinate so you can keep working.
Ready for clarity? Get a PI quote in minutes and know you’re compliant.
