What is personal indemnity insurance in Australia, also called professional indemnity, is insurance covering legal costs and compensation $1M to $5M if you give faulty advice, service or design causing client financial loss $100K to $500K, costing $500 to $2,000 per year for small business $1M to $2M cover, mandatory for many professionals. Personal indemnity insurance, or professional indemnity PI, covers claims for negligence, errors and omissions, breach of duty and defamation, with $1M to $5M cover for legal costs $50K to $100K and compensation $100K to $500K if client sues for faulty advice. For example, accountant giving wrong tax advice causing client $100K loss, PI $1M $800 per year covers $100K compensation plus $20K legal. Real estate agent giving wrong property advice causing $200K loss, PI $2M $1,200 per year covers. Architect faulty design causing building defect $500K, PI $2M $2,500 per year covers. Cost $500 to $1,000 per year for consultant, IT, accountant $1M cover, $1,000 to $2,000 for real estate, mortgage broker $2M, $2,000 to $5,000 for architect, engineer, lawyer $2M to $5M, $10,000 to $20,000 for doctor $20M. So personal indemnity insurance is professional indemnity covering $1M to $5M for faulty advice causing client loss $100K to $500K, costing $500 to $2,000 per year for small business, mandatory for lawyers, accountants, architects and real estate, protecting against $100K to $500K claims.
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