Start smart. Scale strong. Stay protected.​

  1300 475 092   hello@withpocket.com.au

Professional Indemnity Insurance

When your advice or work goes wrong, and the client blames you

You delivered the work. They’re unhappy with the outcome. Now they’re claiming your advice, service, or design caused them financial loss. Professional Indemnity protects you from the lawsuits that could destroy your business.

Get a quote
Schedule a free call

What could go wrong​

(and why you need this)

If you give advice, deliver professional services, or create work that clients rely on, you need Professional Indemnity cover. Here’s what it protects you from:

Scenario 1

The design that "cost them sales"

You run a 5-person branding agency. You design a client’s new website and brand identity. They launch, sales are lower than expected, and they blame your design.

They claim your work cost them $120,000* in projected revenue and want compensation. They sue.

What Professional Indemnity covers

Your legal defence costs, expert witness fees to prove your work was professional, and any settlement if the court finds you partly liable.

Scenario 2

The advice that didn't work out

You’re a business consultant. You advised a client to restructure their operations.

They followed your advice, but market conditions changed, and they incurred a loss. Now they’re claiming your advice was negligent and caused $200,000* in losses.

What Professional Indemnity covers

Your legal representation, investigation costs to prove your advice was reasonable at the time, and compensation if you’re found liable for professional negligence.

Scenario 3

The missed deadline

You’re a solo marketing consultant. A client hired you to launch their product campaign by a specific date.

You delivered 3 weeks late due to scope creep and miscommunication. They claim the delay cost them $80,000* in missed sales during peak season.

What Professional Indemnity covers

Your legal defence, costs to prove the delay wasn’t solely your fault, and settlement payments if you’re found to have breached your professional duty.

Scenario 4

The confidentiality breach

You’re a software developer. During a project, you accidentally exposed some of the client’s proprietary code in a public GitHub repository for 48 hours before you noticed.

They claim their competitor saw it, and their competitive advantage is gone. They’re suing for $500,000*.

What Professional Indemnity covers

Your legal costs, forensic investigation to determine actual damage, and compensation for the breach of confidentiality.

What this actually covers

Professonal indemnity

Professional Indemnity protects you when:

  • A client claims your advice, service, or work caused them financial loss
  • You make a mistake or error in your professional service
  • You miss a deadline, and the client suffers losses as a result
  • You breach confidentiality or disclose client information accidentally
  • Someone claims your work infringed their intellectual property
  • A client alleges you were negligent in your professional duty

What's typically covered:

  • Legal defence costs (this is usually the biggest expense)
  • Court costs and settlements
  • Compensation payments for client losses
  • Cost of correcting your work or redoing the project
  • Investigation costs and expert witnesses
  • Your legal representation if sued

Important: "Claims made" vs. "claims occurring"

Professional Indemnity is “claims made” cover—meaning you need insurance in place when the claim is made, not when the work was done. If you let your policy lapse, you will not be covered for any past work. This is crucial to understand.

What's typically not covered

  • Bodily injury or property damage (that’s Public Liability)
  • Your own business losses or costs
  • Intentional wrongdoing or fraud
  • Work done before you got insurance (it’s “claims made” cover)
  • Criminal acts or illegal services
  • Contractual penalties (unless insured separately)

When you need this

By founder stage

Start smart

Pre-launch to first year

You need this from Day 1 if:

  • Give advice as part of your service (consultants, coaches, strategists)
  • Create work clients rely on (designers, developers, architects, engineers)
  • Handle client data or confidential information
  • Provide professional services that could cause financial loss if wrong
  • Have contracts that require Professional Indemnity cover

Who needs it most:
Consultants, designers, developers, accountants, financial advisers, architects, engineers, marketers, IT service providers, coaches, HR consultants, legal service providers.

Typical coverage

$1-2 million is common for solo operators and small agencies.

Scale strong

Growing and hiring

Your cover needs to increase when:

  • Your revenue exceeds $1M (higher turnover = higher potential claims)
  • You’re winning larger clients with bigger projects
  • Client contracts require higher limits ($5M or $10M)
  • You’re taking on more complex or higher-risk projects
  • You’re working with government or corporate clients

Typical coverage

$2-5 million for growing businesses. Some contracts require $10M+.

Stay protected

Established and optimising

Review your cover if:

  • You’ve changed what you do (new services = new risks)
  • You’ve had a near-miss or complaint that didn’t escalate to a claim
  • A client has threatened legal action
  • Your industry has seen high-profile claims
  • You’re moving into new markets or industries

Typical coverage

$10-20 million. Some corporate clients require $20-50 million for larger contracts.

Common questions

Founders actually ask

I haven't been sued before, do I really need this?

Most founders haven’t been sued. That’s not the point. One claim can bankrupt your business. Legal defence alone costs $30-50k even if you win.

A settlement or court judgment could be hundreds of thousands. It only takes one unhappy client.