How Much Does Professional Indemnity Insurance Cost for Accounting Firms in Australia?

One of the most common questions accounting firm principals ask when reviewing their risk management arrangements is straightforward: how much should professional indemnity insurance cost? The answer depends on a range of factors specific to your firm, but understanding what drives the premium helps you assess whether you are getting value for money - and whether your current cover is appropriately structured.

What Factors Affect PI Insurance Premiums for Accountants?

Insurers assess the risk profile of your firm when calculatingyour premium. The key factors include:

•   Annual fee income: Higher fee income generally meanshigher premium, as it indicates greater volume of work and client exposure

•   Services provided: Firms offering advisory servicesalongside compliance work carry a higher risk profile than those focused solelyon tax and bookkeeping

•   Number of principals and staff: Larger teams mean moretouchpoints with clients and a broader exposure profile

•   Claims history: Prior claims or notifications will betaken into account at underwriting

•   Policy limit and excess: Higher limits of indemnityattract higher premiums; a higher excess can reduce the premium

•   Run-off cover: If included, this extends the cost ofthe policy but provides important protection for historical work

What Is a Typical Premium Range?

Premium ranges vary considerably based on firm size and riskprofile. As a general guide for Australian accounting firms in 2026:

•   Sole traders and small practices (under $200K feeincome): $800 to $2,500 per year

•   Small to mid-size firms ($200K to $1M fee income): $2,500 to $8,000 per year

•   Mid-tier firms ($1M+ fee income): $8,000 and above,depending on services and risk profile

These figures are indicative only. The actual premium for yourfirm will depend on the underwriting assessment of your specific circumstances.

Is Cheaper PI Insurance a Good Idea?

A lower premium is appealing, but the cheapest policy on the market is rarely the best fit for an accounting firm. Generic policies priced for a broad market often include exclusions that are directly relevant to accounting work - such as limitations on advisory services or the absence of ATO-related cover.

When comparing policies, look beyond the premium. Examine the coverage breadth, exclusions, insurer reputation, and claims support available. A policy that costs a few hundred dollars more per year but provides materially broader cover is usually the better investment.

How to Get an Accurate Quote

The most effective way to understand what PI insurance willcost for your firm is to work with a specialist broker who understands theaccounting sector. A broker can assess your firm's risk profile, identify themost appropriate policy structure, and obtain competitive terms from reputableinsurers.

Accountants Advantage by PLI Brokers provides fast, firm-specific quotes for Australian accounting practices. Contact our team to receive a quote tailored to your firm's size, services, and risk profile.

‍