Work out professional indemnity cover instantly with clear inputs, formula shown and shareable results.
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.
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)
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.
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.
Often yes, which erodes the indemnity available. Costs-in-addition wording is materially better and worth paying for.