Professional liability cover: when a client says your work cost them money

Professional liability cover, also called professional indemnity, pays the legal costs and any damages when a client claims your advice, design or service caused them a financial loss. Limits run from R1 million to R10 million and more. Insurers price on your profession, turnover, years trading, claims history and the limit you need. Updated September 2026.

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Who it suits

It suits anyone paid for expertise: consultants, accountants and bookkeepers, engineers, architects, IT and software firms, financial advisers, allied health practitioners and creative agencies. For several of these it is required by a professional body or a licence, and for many more it is required by the contracts their clients sign, which is why our form asks whether a contract demands it. A sole trader needs it as much as a firm: the claim follows the person who gave the advice. It does not cover injury to people or damage to property, which is public liability, and the two are often bought together.

What the insurer will ask, and why

These are the questions on our form for professional liability, with what the insurer does with each answer. Nothing here is optional guesswork: every question exists because a licensed insurer needs it to quote.

What best describes your work?: Profession sets the risk class and rate; some professions carry statutory minimum cover.
How long have you been trading?: Track record affects rating.
Annual turnover: Rating base for liability limits.
Number of employees: Firm size affects exposure and rating.
Cover limit you're after: Sets the liability limit to quote.
Have you had a professional liability claim in the last 5 years?: Prior claims materially affect rating and insurability.
Do any of your clients or contracts require you to hold professional liability cover?: Contractual or statutory requirement is a strong intent signal.
Do you already have professional liability cover?: Distinguishes new-to-cover leads from renewal reviews.
Business or practice name: Identifies the insured entity.
Your role: Decision-maker signal.

Questions people ask

What is the difference between professional and public liability?

Professional liability covers financial loss from your advice or work. Public liability covers injury to people and damage to property. A consultant whose visitor trips in the office needs the second; a consultant whose report was wrong needs the first.

Does it cover work I did before the policy started?

Only if the policy carries a retroactive date earlier than that work, which is usual when you move insurers without a gap. Tell the insurer when you started trading and whether you held cover before.

Do I need it if I have never had a claim?

The cover is for the claim that has not happened yet, and most claims arrive months or years after the work. A clean history lowers the premium; it does not remove the need.

Olvian is a marketing and lead-referral service. We are not a licensed financial services provider, we do not give advice, and we do not sell insurance.