Free PI limit calculator
How much PI cover does your client need?
Check the professional body's minimum, the contracts and a worst single claim, then see the lowest sensible limit. Send the client a branded PDF.
Example figures. Change them to your client's.
1The profession
No professional body sets a minimum, so contracts and exposure set the limit.
2The practice
3The risk
Could one mistake reach several clients?
A template, a shared system or advice given to many.
Defence costs
Carry at least $5m of PI cover.
Set by a contract's requirement
Body minimum
None
Contract
$5m
Worst claim
$2.16m
- No professional body minimum for this profession.
- A contract asks for $5,000,000. Check it is the same basis (any one claim or aggregate).
- A worst single claim of $1,800,000, plus $360,000 for defence costs.
- Defence costs that come out of the limit leave less for damages. Ask about costs in addition.
Checking limits against client contracts? Have Coverbound read the contracts with a free trial
What to tell your client
For a practice like yours the lowest sensible professional indemnity limit is $5,000,000, set by a contract's requirement. Cover is claims made, so this limit also has to cover work you have already done.
This sets a floor to start the conversation, not a recommendation of the right cover. Illustrative only, not advice. The policy wording and the insurer decide. Nothing you type leaves your browser unless you make the PDF.
The minimums
Some professions have a floor set for them
$2m
the least an AFS licensee must hold, rising with revenue up to $20m under ASIC's RG 126.
ASIC RG 126$2m
the least for a CPA Australia public practice with fees under $10m, then $10m and $20m.
CPA Australia By-Law 9.8
In plain English
Three floors set the least a firm should carry
The limit has to clear the highest of them. Anything below leaves a gap the firm pays itself.
The professional body's minimum
Advisers, accountants and lawyers have a minimum set by their regulator or body. It is a floor, not a target.
What the contracts demand
Clients and head contractors often ask for a set limit. Falling short is a breach before any claim is made.
A worst single claim
One mistake on the biggest job, plus the cost of defending it. If one error could reach many clients, it is bigger again.
The claims made trap
Why last year's work needs this year's cover
PI pays claims made while the policy is in force. Stop the policy and every past job is uninsured, however long ago it was done. Toggle run off cover and watch the claim.
Not covered: no policy is in force when the claim arrives, so the firm pays the claim itself.
The rules
Minimum limits by profession
Some professional bodies set a minimum. These are the ones we have checked against the source.
| Profession | Body | Minimum limit | Source |
|---|---|---|---|
| Financial advisers (AFS licensee) | ASIC RG 126 | Revenue, at least $2m, at most $20mAny one claim and in the aggregate | ASIC RG 126 |
| Accountants (CPA Australia) | CPA Australia | $2m up to $10m; $10m up to $20m; $20m above $20mBy gross fee income | CPA Australia By-Law 9.8 |
| Lawyers (Victoria) | LPLC | $2.5mAny one claim, from 1 July 2025 | LPLC |
Engineers, IT firms, consultants and most other professions have no fixed minimum. Their contracts and their exposure set the limit.
How brokers set it
Three rules for a PI limit
- 1
Clear the highest floor
Body minimum, contract requirement and worst claim. The limit must clear all three.
ASIC RG 126 - 2
Match the basis, not just the amount
Any one claim and aggregate are different promises. A contract asking for one is not met by the other.
- 3
Keep past work covered
PI is claims made. Today's limit covers years of past work, and run off cover is needed when a practice stops.
CPA Australia By-Law 9.8
The client PDF
A letter that shows the floors, on your letterhead
Your logo and details, the three floors with their sources and the lowest sensible limit. It explains claims made cover and defence costs in plain words.
- The three floors, with sources
- The lowest sensible limit
- Claims made and run off explained
- Defence costs note
How much professional indemnity cover do you need?
None
Body minimum
$5m
Contract
$2.16m
Worst claim
Worth knowing
- ☐ Cover is claims made, so past work counts
- ☐ Run off cover if the practice stops
- ☐ Check defence costs sit outside the limit
Test yourself
Five PI myths clients believe
Professional indemnity works differently from most covers. See how many of these you would catch before a client does.
A client did the work in 2023 and the claim arrives in 2026. Which policy responds?
Questions brokers ask
PI limits, answered
- How is the suggested limit worked out?
- It takes the highest of the professional body's minimum, the highest contract requirement and a worst single claim (the largest engagement, doubled if one mistake could reach several clients, plus a fifth for defence costs when they come out of the limit). It then rounds up to a limit insurers commonly sell.
- Is this a recommendation?
- No. It sets a floor to start the conversation. Contract terms, aggregate limits, claims history and the client's appetite for risk all matter.
- What if the profession has no minimum?
- Then the contracts and the worst single claim set the floor. Engineers, IT firms and consultants are usually in this position.
- Why double the worst claim?
- When one error can reach several clients, such as a template, shared software or advice given to many, the claims can come together.
- What are defence costs inside the limit?
- The cost of defending a claim is paid from the limit, leaving less for damages. Cover with costs in addition protects the full limit.
- Is my client's data stored?
- No. The calculator runs in your browser. Figures only leave it if you make the PDF, which goes to our report builder to print.
With a free trial
Check every client's PI against their contracts
Coverbound reads a client's contracts for insurance requirements, keeps the limits with the client and flags a gap before renewal. 14 days free, no card.
Check a client's PI limit before a contract does
Two minutes now, or a breach notice later.
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