Professional Indemnity Insurance
Protect against financial loss from professional errors and negligent advice. For builders, designers, and project managers.
Professional indemnity insurance (PI) is crucial for tradies who provide design advice, specifications, or project management alongside their trade work. It covers the cost of claims arising from erro...
Get Your Free Tradie Quote
Compare NZ insurers in 2 minutes
Professional Indemnity Insurance — NZ Guide
Professional indemnity insurance (PI) is crucial for tradies who provide design advice, specifications, or project management alongside their trade work. It covers the cost of claims arising from errors, omissions, or negligent advice that results in financial loss to your client. Unlike public liability (which covers physical injury or property damage), PI covers financial loss from poor advice or flawed designs. For example, if a design-and-build builder specifies materials that fail, or a consultant provides faulty advice that causes a client financial loss, PI covers the liability. Premiums range from NZ$50–300 per month depending on business type and turnover.
What's Covered
PI vs Public Liability
These are different covers. Public liability (PL) covers third-party physical injury or property damage—someone gets hurt or their building is damaged. Professional indemnity (PI) covers financial loss from your professional errors—you gave bad advice or made a design mistake that cost your client money. Design-and-build builders need both.
Claims-Made Coverage
PI insurance is "claims-made," meaning it covers claims made during the policy period, not incidents that occurred during it. This is different from public liability (occurrence-based). You need retroactive cover to protect yourself for work done before your PI policy started. Always discuss this with your insurer.
Scope of Cover
PI cover applies to professional services you provide—design, advice, specifications, project management. It doesn't cover the physical work itself (that's PL). Common claims include design defects, incorrect material specifications, failed cost estimates, and negligent advice.
Who Needs This Cover?
- →Builders doing design-and-build work
- →Structural designers and engineers
- →Quantity surveyors and cost estimators
- →Project managers in construction
- →Architects consulting on trades work
- →Trade consultants providing expert advice
Indicative Premium Ranges
Premiums vary by trade type, business size, and claims history. These ranges are a guide only — get a personalised quote for accurate pricing.
| Business Type | Typical Premium |
|---|---|
| Small consultant (design-focused) | NZ$50–100/month |
| Mid-size design-build business | NZ$100–300/month |
| Large professional firm | By quote |
Frequently Asked Questions
Do I need professional indemnity as a builder?
If you provide design, advice, or project management alongside building work, yes. Design-and-build firms definitely need PI. If you only build to client specifications without providing design advice, PI is less critical but still worth considering.
What's the difference between PI and public liability?
PL covers physical injury or property damage caused by your work. PI covers financial loss from your professional errors or bad advice. A builder offering design services needs both.
Is professional indemnity claims-made or occurrence-based?
PI is claims-made, meaning it covers claims made during the policy period, regardless of when the work occurred. You need retroactive cover to protect past work. Always discuss this with your insurer when taking out a policy.
What counts as a PI claim?
Examples include design flaws, incorrect specifications, faulty cost estimates, negligent advice, and failure to meet industry standards. Any professional error that results in financial loss to your client could trigger a claim.
How much PI cover should I have?
Cover amounts typically range from NZ$100,000 to NZ$1 million depending on project size and business turnover. Discuss your specific exposure with your insurer or broker to determine appropriate cover.
Get Your Free Tradie Quote
Compare NZ insurers in 2 minutes
Why Use TradieInsurance.co.nz?
Speak to a Specialist
Our brokers specialise in tradie insurance and can tailor cover for your specific trade and business size.
📞 09 885 9549Send us a message →Ready to Protect Your Trade?
Get 2–3 personalised quotes from NZ's top tradie insurance providers within 24 hours.
- ✓Free, no-obligation quotes
- ✓Compare multiple providers
- ✓24-hour response
- ✓Expert support