The Value of Professional Indemnity Insurance

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Key takeaways:

  • Professional indemnity (PI) insurance is vital for anyone who provides professional services or advice to clients in exchange for a fee.
  • PI is a wide-ranging insurance claim solution that protects individuals against legal costs and claims for damages due to an error or act of omission throughout the course of business. Basically, it is cover that protects you and your business if you “fail to present work to a professional standard"
  • PI is mandatory in some industries, such as medicine, accounting, law, engineering, real estate, photography, building, marketing, architecture or finance.
  • Check the ‘sunset clause’ in your policy – this part of the contract states a specified period of time in which a claim can be lodged after a policy has expired.

Have you ever questioned whether you really need PI cover? Unless you have endless disposable income or you can predict the future, then this cover is vital should you or your employees provide professional advice to your customers or clients.

In our blame-culture society, professional indemnity insurance becomes a crucial component in helping protect consultants, directors, or owners of a business against claims of professional misconduct, malpractice, errors or omissions, and breach of contract.

 

What could lead to a claim?

Without PI cover, such claims can end up having devastating affects on your business or even cripple it altogether. It not only puts your business at risk either. Your personal assets, such as your house, can be affected, as well as the people you work with, including partners, employees and volunteers.

The greatest value in a PI policy is the cover against legal defence costs.

Even if you pride yourself on meticulous work, there's a chance you could still be sued unfairly by a client who is merely dissatisfied. Even though they might have no valid claim, the allegation could still involve you in substantial legal costs and non-productive time.

Whether you're found liable or not, if a claim is brought against you, a PI policy will be able to pay for all of your legal costs to defend that action.

A professional indemnity policy can save you from personal bankruptcy or permanent closure of your business.

 

 

A few things to consider...

What does “claims-made” mean (aka a ‘sunset clause’)?

One particular topic that most policyholders may not be aware of is something called a “sunset clause.” A sunset clause is part of your insurance policy that is related to the time limit in which your client is able to make a claim and be considered for coverage.

For example, let’s say your professional indemnity policy was effective 1st Aug 2020 and expires 1st Aug 2021, and has a 2year sunset clause. So, if a latent “defect” on your work performed sometime between 1st Aug 2020 to 1st Aug 2021 is not discovered until 2nd Aug 2023 (2 years and 1 day after expiration) or later, then your policy won’t cover you.

 

What's the difference between Public Liability and Professional Indemnity?

Public liability insurance covers compensation claims if you’re sued by a member of the public for injury or damage, while professional indemnity insurance covers compensation claims if you’re sued by a client for a mistake that you make in your work.

However, neither policy will provide cover for intentional or dishonest acts.

Professional Indemnity in practice...

Example: A landscape architecture firm is sued by their client for the costs of rectifying an extension built from a flawed design. The PI policy reacts and the insurer pays out $50,000.

Example: A customer purchases the plants you have recommended and later discovers that they have an aggressive root system and are destroying underground pipes and the foundations. There would likely be a large claim for the rectification work and replacement of the plants for which you would be held responsible.

Similarly, if a landscaper followed your design plans and it is later discovered that insufficient drainage was incorporated into the plans, you as the designer would be held responsible for the customer’s flooded premises; not the landscaper.

Example: A construction company discovers a fault in the plans, and the building then needs to be demolished and rebuilt from scratch. The property developer sues for $500,000 in damages due to loss of income and value of business. The PI policy reacts and pays out the $500k in full.

Mistakes can (and do) happen in every line of business. Professional indemnity insurance means peace of mind for you and your clients if things don't go exactly to plan. You work hard to provide the best service you can and that’s what your clients expect, so don't let a silly mistake define your business. Make sure you have the right cover in place so you can keep moving and focus on doing what you do best.

The Value of Professional Indemnity Insurance

The Value of Professional Indemnity Insurance 

Key takeaways:

  • Professional indemnity (PI) insurance is vital for anyone who provides professional services or advice to clients in exchange for a fee.
  • PI is a wide-ranging insurance claim solution that protects individuals against legal costs and claims for damages due to an error or act of omission throughout the course of business. Basically, it is cover that protects you and your business if you “fail to present work to a professional standard"
  • PI is mandatory in some industries, such as medicine, accounting, law, engineering, real estate, photography, building, marketing, architecture or finance.
  • Check the ‘sunset clause’ in your policy – this part of the contract states a specified period of time in which a claim can be lodged after a policy has expired.

Have you ever questioned whether you really need PI cover? Unless you have endless disposable income or you can predict the future, then this cover is vital should you or your employees provide professional advice to your customers or clients.

In our blame-culture society, professional indemnity insurance becomes a crucial component in helping protect consultants, directors, or owners of a business against claims of professional misconduct, malpractice, errors or omissions, and breach of contract.

 

What could lead to a claim?

Without PI cover, such claims can end up having devastating affects on your business or even cripple it altogether. It not only puts your business at risk either. Your personal assets, such as your house, can be affected, as well as the people you work with, including partners, employees and volunteers.

The greatest value in a PI policy is the cover against legal defence costs.

Even if you pride yourself on meticulous work, there's a chance you could still be sued unfairly by a client who is merely dissatisfied. Even though they might have no valid claim, the allegation could still involve you in substantial legal costs and non-productive time.

Whether you're found liable or not, if a claim is brought against you, a PI policy will be able to pay for all of your legal costs to defend that action.

A professional indemnity policy can save you from personal bankruptcy or permanent closure of your business.

 

 

A few things to consider...

What does “claims-made” mean (aka a ‘sunset clause’)?

One particular topic that most policyholders may not be aware of is something called a “sunset clause.” A sunset clause is part of your insurance policy that is related to the time limit in which your client is able to make a claim and be considered for coverage.

For example, let’s say your professional indemnity policy was effective 1st Aug 2020 and expires 1st Aug 2021, and has a 2year sunset clause. So, if a latent “defect” on your work performed sometime between 1st Aug 2020 to 1st Aug 2021 is not discovered until 2nd Aug 2023 (2 years and 1 day after expiration) or later, then your policy won’t cover you.

 

What's the difference between Public Liability and Professional Indemnity?

Public liability insurance covers compensation claims if you’re sued by a member of the public for injury or damage, while professional indemnity insurance covers compensation claims if you’re sued by a client for a mistake that you make in your work.

However, neither policy will provide cover for intentional or dishonest acts.

Professional Indemnity in practice...

Example: A landscape architecture firm is sued by their client for the costs of rectifying an extension built from a flawed design. The PI policy reacts and the insurer pays out $50,000.

Example: A customer purchases the plants you have recommended and later discovers that they have an aggressive root system and are destroying underground pipes and the foundations. There would likely be a large claim for the rectification work and replacement of the plants for which you would be held responsible.

Similarly, if a landscaper followed your design plans and it is later discovered that insufficient drainage was incorporated into the plans, you as the designer would be held responsible for the customer’s flooded premises; not the landscaper.

Example: A construction company discovers a fault in the plans, and the building then needs to be demolished and rebuilt from scratch. The property developer sues for $500,000 in damages due to loss of income and value of business. The PI policy reacts and pays out the $500k in full.

Mistakes can (and do) happen in every line of business. Professional indemnity insurance means peace of mind for you and your clients if things don't go exactly to plan. You work hard to provide the best service you can and that’s what your clients expect, so don't let a silly mistake define your business. Make sure you have the right cover in place so you can keep moving and focus on doing what you do best.

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Gary Perera

Senior Insurance Broker

With 35 years’ experience in the insurance industry, Gary is a Senior Insurance Broker at Midland with extensive knowledge across a wide range of business sectors. He specialises in insurance for breweries, distilleries, cafés, restaurants, and manufacturing businesses, bringing a depth of practical insight to every client engagement.

Known for his thorough and considered approach, Gary takes the time to understand how each business operates before delivering clear, tailored insurance solutions. A committed professional, he has completed numerous industry qualifications and is a proud member of ANZIIF, maintaining his expertise through ongoing education and regular engagement with industry developments.

Outside of work, Gary is an avid sports enthusiast who enjoys running, football, and cricket. He remains driven by a simple principle: continuous improvement and delivering the highest standard of advice to his clients.

Angus Matheson

Angus Matheson

Senior Insurance Broker

With more than 21 years’ experience in the insurance industry, Angus is a Senior Insurance Broker specialising in Road Freight Transport insurance. He is recognised for his deep understanding of the transport sector and his ability to deliver tailored risk solutions that address the operational and commercial challenges faced by transport businesses.

Angus takes an empathetic, client-first approach, investing the time to understand each business, its priorities, and its risk profile before providing advice. A committed professional, he holds accreditations with NIBA, ANZIIF, CIP, and QPIB, and remains actively engaged with industry developments through ongoing education and professional involvement. His focus is on delivering reliable protection that supports business continuity and long-term confidence.

Sarah Grose

Sarah Grose

Senior Insurance Broker

With more than 17 years’ experience in the insurance industry -including 16 years with Midland - Sarah brings deep expertise and a genuine commitment to helping clients protect what matters most. Having held a range of roles across the business, including management positions, she has a well-rounded understanding of both client needs and the broader insurance landscape.

Sarah specialises in small to medium-sized business insurance, with particular expertise in the film and television sector, self-storage, and, more recently, breweries and distilleries. Her approach is focused on making insurance clear, practical, and tailored to each client’s circumstances. Known for her approachable and solution-focused style, Sarah builds long-term relationships grounded in trust, reliability, and understanding.

She holds a Diploma of Insurance Broking and remains actively engaged in ongoing professional development to ensure her advice stays current and relevant.

Andrew Woff

Andrew Woff

Senior Insurance Broker

With close to 20 years’ experience in the insurance industry, Andrew is a Senior Insurance Broker at Midland specialising in heavy vehicle and equipment insurance, as well as cover for breweries and distilleries. He is particularly well regarded for his ability to secure tailored, cost-effective solutions for assets involving motors, wheels, or tracks, alongside his strong understanding of the risks unique to alcohol production businesses.

Andrew works with a wide range of clients, from sole traders through to large-scale operations, and is known for his clear communication, flexible approach, and commitment to personalised service. A QPIB-accredited broker and member of NIBA, he maintains high professional standards and remains focused on delivering practical, well-considered advice.

Outside the office, Andrew is a proud father of three and an active community volunteer. His interests in music, electronics, mechanics, and brewing reflect the same curiosity and hands-on mindset he brings to his professional work.

Scott McMurtrie

Scott McMurtrie

Senior Insurance Broker

Scott is a Senior Insurance Broker with over 12 years’ experience supporting Australian small and medium-sized businesses. He specialises in tailored insurance solutions across the Film & Entertainment, Transport, and Manufacturing sectors, delivering advice that reflects each client’s specific risks and operations.

With a strong focus on understanding how businesses work in practice, Scott provides clear, relevant cover recommendations backed by ongoing professional development and industry engagement.

Outside the office, he enjoys AFL, soccer, and music, and values building long-term client relationships founded on trust and reliability.

Beau Runnalls

Beau Runnalls

Senior Insurance Broker

Beau is a senior insurance broker at Midland with seven years of industry experience supporting businesses across Australia. He works across a broad range of sectors, with particular expertise in earthmoving, heavy equipment, trades, and the winery industry.

Known for his attention to detail and measured approach, Beau focuses on delivering insurance solutions that are clear, practical, and free from unnecessary complexity. He remains actively engaged in professional development, ensuring his advice reflects current industry standards and best practice.

Beau places strong value on collaboration and long-term client relationships. Outside of work, he enjoys golf and football, reflecting his team-oriented mindset and active approach both professionally and personally.

Alex Petkovic

Alex Petkovic

Senior Insurance Broker  |  Development & Service

With 27 years of experience in the insurance industry, Alex is a senior broker at Midland, recognised for his depth of knowledge, attention to detail, and straightforward approach. While he works across a broad range of businesses, he has a particular focus on clients in the construction and building sectors.

Committed to keeping insurance clear and practical, Alex places a strong emphasis on honesty and client-first advice. He remains actively engaged with industry developments through ongoing professional development and research, and is also a natural mentor, regularly supporting and guiding emerging brokers within the team.

Joshua-Kerr

Joshua Kerr

National Sales Manager

Joshua is Midland’s National Sales Manager, with more than two decades of experience in the insurance industry. His expertise spans a wide range of insurance solutions, with particular depth in the winery and brewery sectors.

Taking a considered, people-focused approach, Joshua works closely with clients to understand how their businesses operate and the risks they face, allowing him to deliver insurance solutions that are both practical and relevant. He is known for his ability to make complex insurance concepts clear and approachable.

Outside of work, Joshua has a strong connection to community, having spent several years coaching junior basketball and serving as Vice President of a children’s basketball club. Staying closely attuned to industry developments, he is committed to helping clients make informed insurance decisions that support their long-term success.

Justin-Lane

Justin Lane

Director

Justin is a Director at Midland and has been part of the business since 2003. With more than two decades of experience, he works closely with small businesses across Australia, helping them secure insurance solutions that genuinely reflect the way they operate.

Known for his practical, solution-focused approach, Justin places strong emphasis on clarity, reliability, and long-term client relationships. His depth of industry knowledge and consistent, hands-on service have seen him become a trusted adviser to many business owners over time.

Damien Lane

Director

Since 2001, Damien has been central to Midland’s evolution, bringing more than two decades of industry experience and a strong commitment to client-focused service. His expertise spans a wide range of sectors, with recognised depth in the brewery and distillery space.

Working with independent brewers across Australia, Damien helps clients navigate complex operational risks with practical, grounded advice. He is known for his industry knowledge, clear communication, and ability to build enduring client relationships.

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