PI does not usually cover problems you knew about before the policy started, injury or property damage (health practitioners are the main exception), deliberate or dishonest acts, fines and penalties, or promises that go beyond what the law would require. Cyber events and work in the USA or Canada are often excluded too. Every policy is worded differently, so these are common examples, not a full list.
Source: https://piinsurance.com.au/what-pi-doesnt-cover/, fetched from the preview https://pi-react-4ee768.pages.dev/what-pi-doesnt-cover/ on 10 Nov 2026; site dated 3 Nov 2026. Preview wording, not yet broker-reviewed. General information, not advice.
Key points
- Problems you knew about before the policy started are usually excluded.
- Injury, property damage, dishonesty, fines and promises beyond the law are common exclusions.
- Every policy is worded differently. Read yours.
Common exclusions in plain terms
- Known circumstances. Anything you knew, or should reasonably have known, might lead to a claim before the policy started. This is why you notify problems as soon as you know of them. Why timing matters.
- Prior claims. Claims already made or notified under an earlier policy.
- Your own injury or illness. PI covers your liability to others, not you. That is a job for income protection or workers compensation.
- Injury to others and property damage. Usually covered by public liability, not PI. The exception is health and allied health: their PI (medical malpractice) can respond to injury caused by treatment or advice. PI and public liability compared.
- Fraud and dishonesty. Deliberate wrongdoing is not covered for the person who did it. Some policies still protect innocent partners or the firm.
- Contractual liability beyond the law. If you sign a contract accepting more responsibility than the law would place on you, such as an uncapped indemnity, the extra part may not be covered.
- Fines and penalties. Many fines and penalties cannot be insured, and policies usually exclude them. Some cover legal costs of an investigation.
- Cyber events. A hack or data breach is often excluded unless the policy includes a cyber extension or you hold separate cyber cover.
- Guarantees and warranties. A written promise of a result, such as "fit for purpose" or a guaranteed saving, may not be covered beyond your normal duty of care.
- USA and Canada. Many policies exclude claims brought there or work for clients there, unless agreed. Tell your broker if this applies.
- Insolvency and trading debts. Unpaid bills and your own business losses are not covered. That includes a client not paying your fee, though a negligence claim the client makes in reply can be. How most PI claims start.
Exclusions differ by occupation
Insurers add exclusions that suit the work. A design firm may see exclusions around asbestos or cladding, an IT business around delays caused by third-party software, a financial adviser around particular products. Each occupation page lists common exclusions to watch.
How to check your own policy
Read the exclusions section of the policy wording, and the schedule for any extra exclusions or endorsements added just for you. If something in your work looks close to an exclusion, ask your broker in writing before a claim, not after. Sometimes an exclusion can be removed or narrowed for an extra premium.
Common questions
Does PI cover injury to a client?
Usually not. Injury to people and damage to property is normally covered by public liability insurance. For health and allied health practitioners, PI (medical malpractice) can respond to injury caused by treatment.
Does PI cover a data breach?
Often not, unless the policy includes a cyber extension. Separate cyber cover is common.
Are fines covered by PI?
Generally no. Many fines and penalties cannot be insured, though some policies pay legal costs of an investigation.