Just starting up, or renewing with a broker who's gone quiet? Professional indemnity compared on cover & price.

Some professions have no choice.

• Solicitors, financial advisers and most medical and allied health practitioners must hold it, by law, by their licensing body or by their professional association.
• Accountants need it if they hold a public practice certificate or are registered tax or BAS agents.
• Registered architects in Queensland, New South Wales and Victoria have a duty under their state's code of practice or Act. In Queensland it is a duty to take reasonable steps.
• Engineers are required in some states, through their registration rather than their job title.
• Building certifiers and consulting surveyors are required in some states, often at a set figure.
• Holders of an Australian Financial Services Licence who serve retail clients must hold adequate professional indemnity, unless they are exempt or ASIC has approved another arrangement.
• Whether a real estate agent is required depends on the state's licensing scheme.

Professional services firms, ICT consultants, marketing agencies, property valuers and bookkeepers can also face claims about their work.

An online quote asks what you do and what you turn over. It usually won't ask whether your contracts set a limit, how far back your cover needs to reach, or what happens to your cover if you take on a partner next year. We ask all three.

Contracts, tenders and regulators often set a minimum limit, so the figure is rarely your choice alone. Most of the clients we arrange cover for carry between $1 million and $2 million.

At its heart is breach of professional duty, meaning work below the standard a reasonably competent person in your line of work would have delivered. Think of an accountant's advice that triggered a tax penalty, an engineer's calculation that under-specified a structure, or a consultant's report that missed something material.

Most policies also cover breach of confidentiality or privacy, unintentional infringement of someone's intellectual property, and defamation arising from your work. Errors and omissions insurance, or E&O, is the American name for the same cover, so a contract that asks for E&O can be met by a professional indemnity policy that fits its terms.

A policy can limit each claim and also cap the total for all claims in the policy period. That total is called an aggregate limit, and an earlier claim can wear it down. Some policies also pay your legal costs out of the limit, so every dollar spent defending you is a dollar less for the claim. A $1 million limit that includes those costs can leave far less for the claim than a $1 million limit with costs paid on top. Most policies also carry an excess, the amount you pay yourself, on every claim.

The retroactive date sets how far back the policy reaches. Work before that date is excluded, so check it against your practice history whenever you change insurers.

We raise run-off with you when you take on a partner, change your business structure or start talking about winding down, while the policy is still running.

A continuous cover clause may help with an unreported problem, subject to its conditions. Some require uninterrupted cover with the same insurer; others recognise earlier cover elsewhere. We check the difference before recommending a move. It is still important to notify problems promptly.

Some insurers write a separate policy for particular professions. Others cover the same work under a general policy, tailored to your occupation through your policy details and an application form written for it. What makes a policy occupation-specific is rarely what it agrees to cover. More often it is how the policy defines your professional business, and the extras and exclusions built around that definition.

Technology, marketing and other digital businesses also need to consider data breaches, intellectual property and content disputes. Some policies combine professional indemnity, cyber and public liability; separate covers are another option. We compare the cover for the work you do.

Delaying notification. Tell the insurer promptly and in writing about a claim or a problem that could lead to one. Do not wait for renewal or cancellation. If the policy has already ended, contact us immediately to check whether a reporting provision applies.

Assuming a subcontractor's work is covered. If a consultant or tradesperson you engage gets something wrong, your wording decides whether your policy answers for it.

For a policy we look after, our specialist claims manager deals with the insurer while your broker remains involved. We follow up delays, check the response against the wording and evidence, and challenge it where there are grounds. We explain the insurer's position and our action on your behalf. A claim already running with another broker or directly with an insurer stays with them. Read how we work for you.