Professional indemnity / Cost
Professional Indemnity Insurance Cost NZ
Indicative cost
$25–$120 per month indicative for a NZ small business or sole practitioner. Bookkeepers and accountants sit at the lower end; architects, engineers and lawyers at the upper end. Claims-made basis.
Indicative cost by profession
12 common NZ professions with indicative monthly cost and typical cover limit.
| Profession | Indicative monthly | Typical limit |
|---|---|---|
| Bookkeepers | $25–$50 | $500K–$1M |
| Accountants | $30–$60 | $1M–$2M |
| Business / management consultants | $30–$70 | $1M–$2M |
| IT consultants / software contractors | $35–$80 | $1M–$2M |
| Marketing / PR consultants | $25–$60 | $1M |
| Architects | $80–$200 | $2M–$5M |
| Engineers (civil / structural) | $80–$200 | $2M–$5M |
| Lawyers (sole or small firm) | $100–$300 | $2M+ |
| Financial advisers (FSPR) | $80–$200 | $1M–$2M |
| Real estate agents | $50–$120 | $1M–$2M |
| Recruitment consultants | $40–$90 | $1M |
| Surveyors / valuers | $70–$180 | $1M–$2M |
Six factors that drive the price
- Profession and risk class: Lawyers and engineers carry higher PI than bookkeepers because exposure-per-dollar-fee is higher.
- Fees / revenue: Insurer prices on annual fee income or gross revenue.
- Cover limit: $1M → $2M typically adds 30–50% to premium.
- Claims history: Past circumstances notified (even without paid claim) raise premium.
- Retroactive date: Cover for work done before policy inception costs more. Premium scales with depth.
- Run-off cover: Separate single-premium product when you stop trading.
Frequently asked questions
How much does professional indemnity cost in NZ?
Indicative $25–$120/month for a NZ small business or sole practitioner. Lawyers and engineers sit higher ($100–$300). Cost depends on profession, fees/revenue, cover limit ($500K–$10M), claims history, and the retroactive date.
Why is PI claims-made?
Almost all NZ PI policies are claims-made — the claim must be first made against you during the policy period, regardless of when the error occurred (subject to the retroactive date). This is why continuous cover matters and why run-off is needed when you stop trading.
What is the retroactive date?
The retroactive date sets how far back in time the policy covers work. A 'full retroactive' policy covers all past work; a 'no retroactive' policy covers only work done during the policy period. Premium scales with retroactive depth.
Do I need run-off cover when I stop trading?
Almost always yes. A claim can be made years after the work was done. Run-off cover (or 'extended reporting period') continues PI cover for past work after your main policy ends. It is bought as a single-premium extension, typically 3–7 years.
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Compare quotes through Evolve Group Limited (FSP711891). Business-insurance enquiries are referred to Blanket Advice Limited (FSP1004126).
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