Insights and Resources

Yes, Professional Indemnity (PI) insurance premiums are generally tax-deductible for Australian sole traders because they are business expenses associated with the professional services they provide and the income they earn. This reflects the Australian Taxation Office (ATO)’s general rule that expenses incurred in earning assessable income may be deductible.

Professional Indemnity (PI) insurance is designed to respond to claims alleging that a client suffered financial loss due to professional advice, services, errors or omissions. Depending on the policy, it may help cover legal defence costs and compensation that the insured is legally liable to pay.

One client complaint can quickly become more than an uncomfortable conversation. If a client alleges your advice, design, strategy or service caused financial loss, you may need to respond formally, even if you believe you did nothing wrong.

A landlord is asking for proof of liability cover before handing over the keys to a new studio. A market stall booking for tomorrow morning is confirmed only if you have cover. A client will not sign off on a project until they see proof of insurance. These requests tend to arrive with little notice.

Say you run a business coaching practice. During a workshop, a client trips over a cable and injures their wrist. Months later, another client claims the growth strategy you recommended caused them a $60,000 financial loss. Same business. Two incidents. Two entirely different risks.

You've delivered the work, the project is finished and the invoice has been paid. Then, weeks or even months later, a client contacts you, claiming that your advice, recommendations or professional services caused them financial loss.

A professional indemnity claim can create real financial exposure well before anyone decides whether you were at fault.

As a graphic designer, your days are filled with focussing on creating gorgeous visual assets that help businesses thrive.

The end of the financial year is usually when small business owners review tax records, budgets, expenses, accounts and plans for the next financial year. It is a busy period, but it is also one of the best times to step back and look at how your business has changed over the year. When it comes to insurance, you might just want to renew your existing policy.