Three numbers help: what your contract asks for, what your regulator requires, and the largest loss your work could realistically cause a client. A limit below the first two may not meet your obligations.
Source: https://piinsurance.com.au/how-much-cover/, fetched from the preview https://pi-react-4ee768.pages.dev/how-much-cover/ on 10 Nov 2026; site dated 3 Nov 2026. Preview wording, not yet broker-reviewed. General information, not advice.
Key points
- Your contract and your regulator each set a floor. Take the higher.
- Then think about what a client could lose on your biggest job.
- Per claim and aggregate limits are different. Check the wording.
Start with what you are told
If a contract or panel names a limit, that is your floor. If your licence or registration body sets a minimum, that is also a floor. Take the higher of the two. Where a rule is unclear, check with your regulator.
Then think about your largest job
Ask what a client could lose if your work went wrong on your biggest project: rework, delay, lost revenue. Your limit also has to pay legal costs on some policies, so leave room.
Per claim and aggregate
Per claim is the most the policy pays for one claim. Aggregate is the most it pays in the policy year. Many contracts ask for "$2m per claim and in the aggregate", which most standard policies meet. Some government panels ask for more in the aggregate than per claim. Check the wording.
Limits you will often see
These are examples, not rules. Your contract and regulator decide the minimum.
- $1m: often small private clients, bookkeepers, coaches
- $2m: often consulting, IT and some government work
- $5m to $10m: often construction, engineering and larger enterprise contracts
Common questions
Is $1m PI enough?
It is enough when no contract or regulator asks for more and your largest job could not cause a bigger loss.
Can I increase my limit mid-year?
Usually yes. The insurer charges the difference for the rest of the year.