Professional Indemnity Cover Calculator

Work out professional indemnity cover instantly with clear inputs, formula shown and shareable results.

About Professional Indemnity Cover Calculator

Professional indemnity limits are set from the greater of a multiple of annual fee income, a proportion of the largest single engagement, and any contractually required minimum. Because claims often relate to the value at risk in the client's project rather than your fee, the project test frequently governs.

Formulas

Fee income basis

Fee basis = Annual fee income x Multiple

Project basis

Project basis = Largest engagement value x 50%

Limit

Limit = max(Fee basis, Project basis, Contractual minimum)

Worked example

With the default values below, Professional Indemnity Cover Calculator returns Recommended limit of indemnity of $113,000,000.00. Change any input above and every figure here is recalculated in your browser.

Inputs used

Annual fee income: 45,000,000
Value of the largest engagement: 80,000,000
Fee income multiple applied: 2.5
Contractually required minimum limit: 50,000,000

Results

Recommended limit of indemnity: $113,000,000.00
Fee income basis: $112,500,000.00
Largest engagement basis: $40,000,000.00
Driving basis: Fee income multiple drives the limit

Step by step

1Values used
2Fee income basis
3Project basis
4Limit
5Recommended limit of indemnity= 113,000,000.00
6Fee income basis= 112,500,000.00
7Largest engagement basis= 40,000,000.00
8Driving basis= Fee income multiple drives the limit

Assumptions and limits

The result is derived only from the 4 inputs listed above. Anything not among them is not part of the calculation.
In particular, this calculator does not take inflation or tax into account.
Figures are rounded for display to 2 decimal places, so totals built from several rounded parts can differ slightly from the unrounded arithmetic.
Indicative estimate only. Fees, entitlements, limits and formulas vary by jurisdiction, statute, policy wording and the facts of the case. This is not legal, tax, insurance or financial advice — confirm with a qualified professional or the relevant authority.

How these calculators are built and tested is described on the Methodology page. If a figure looks wrong, please report it.

Indicative estimate only. Fees, entitlements, limits and formulas vary by jurisdiction, statute, policy wording and the facts of the case. This is not legal, tax, insurance or financial advice — confirm with a qualified professional or the relevant authority.

Frequently Asked Questions

Why is professional indemnity written on a claims-made basis?

Because the loss may emerge years after the advice. Cover must be in force when the claim is made, which is why run-off cover matters when you stop trading.

Do defence costs sit inside the limit?

Often yes, which erodes the indemnity available. Costs-in-addition wording is materially better and worth paying for.