Professional Indemnity Insurance NZ

What is Professional Indemnity Insurance?

Professional indemnity insurance (also known as PI insurance) protects professionals against claims arising from negligence, errors, or omissions in the advice or services they provide. If a client suffers a financial loss due to your professional advice or service, they may make a claim against you - and PI insurance is there to protect your business and personal assets.

In New Zealand, many professional bodies and industry associations require their members to hold professional indemnity insurance as a condition of membership or registration.

What Does It Cover?

• Professional negligence claims
• Errors and omissions
• Breach of professional duty
• Legal defence costs
• Investigation and settlement costs
• Claims arising from dishonest or fraudulent acts

Who Needs Professional Indemnity?

Professional indemnity insurance is essential for professionals who provide advice, consulting, or professional services:

• • Accountants and bookkeepers
• • Lawyers and legal professionals
• • Consultants and business advisors
• • Architects and engineers
• • IT professionals and software developers
• • Real estate agents and property managers
• • Financial advisers and insurance brokers
• • Medical and health professionals

Typical Costs

Professional indemnity insurance costs vary based on your profession, business size, and risk profile. Typical costs start from:

• • Small consultancy: From $800/year
• • Accounting firm: From $1,500/year
• • Law firm: From $3,000/year
• • Architecture/engineering: From $2,500/year
• • IT consulting: From $600/year