Date posted: 14/10/2019

The Scheme and Professional Indemnity insurance

A second layer of security for your practice in professional indemnity insurance.

In brief

  • The Scheme and Professional Indemnity insurance
  • Online PI calculator
  • What happens if a client makes a claim?

The Scheme and Professional Indemnity insurance

The Scheme requires members to have a minimum level of Professional Indemnity (PI) insurance.  

 The type of work you perform, your fees and your billing cycle impacts the minimum PI insurance you need

  Audit  Insolvency    Other
Where highest fee* is <$100k  $2 million  $2 million  $2 million 
Where highest fee* is ≥$100k  but < $300k $5 million  $5 million  $5 million 
Where highest fee* is ≥$300k but <$500k  $10 million  $10 million   $10 million  
Where highest fee* is ≥$500k but <$1million  $20 million  $20 million  $20 million 
Where highest fee* is ≥$1million but <$2.5million  $50 million   $20 million   $20 million 
Where highest fee* is ≥$2.5million  $75 million   $20 million   $20 million 
  Audit  Insolvency    Other
Where highest fee is $100k  $2 million  $2 million  $2 million 
Where highest fee is ≥$100k  but < $300k $5 million  $5 million  $5 million 
Where highest fee is ≥$300k but <$500k  $10 million  $10 million   $10 million  
Where highest fee is ≥$500k but <$1million  $20 million  $20 million  $20 million 
Where highest fee is ≥$1million but <$2.5million  $50 million   $20 million   $20 million 
Where highest fee is ≥$2.5million  $75 million   $20 million   $20 million 

*Fee is defined as a payment made to a participant in exchange for services but excludes disbursements and goods and services taxes.

For more support working out how much you’ll need, refer to the section on calculating your cover below or refer to our online survey.

  Audit  Insolvency    Other
Where highest fee is $100k  $2 million  $2 million  $2 million 
Where highest fee is ≥$100k  but < $300k $5 million  $5 million  $5 million 
Where highest fee is ≥$300k but <$500k  $10 million  $10 million   $10 million  
Where highest fee is ≥$500k but <$1million  $20 million  $20 million  $20 million 
Where highest fee is ≥$1million but <$2.5million  $50 million   $20 million   $20 million 
Where highest fee is ≥$2.5million  $75 million   $20 million   $20 million 
  Audit  Insolvency    Other
Where highest fee is $100k  $2 million  $2 million  $2 million 
Where highest fee is ≥$100k  but < $300k $5 million  $5 million  $5 million 
Where highest fee is ≥$300k but <$500k  $10 million  $10 million   $10 million  
Where highest fee is ≥$500k but <$1million  $20 million  $20 million  $20 million 
Where highest fee is ≥$1million but <$2.5million  $50 million   $20 million   $20 million 
Where highest fee is ≥$2.5million  $75 million   $20 million   $20 million 

Online PI calculator

Use our online PI insurance calculator to get an idea of how much cover you might need to protect your practice

Go to the calculator

What happens if a client makes a claim?

The first thing to do is let your insurer know. Be guided by their advice.

You also need to let us know about the claim. We need the information because of our reporting obligations to the Professional Standards Council. Information you provide is kept strictly confidential and we only report de-identified data.

Your lawyer is responsible for including the liability cap as part of the defence of a claim. The court considers if certain conditions were met at the time the work was performed in making a decision on the outcome of the claim.

These include:

  1. A scheme was in place, and
  2. you were a member of Chartered Accountants ANZ covered by the scheme(see How it works? above), and
  3. your practice held practice entity membership with Chartered Accountants ANZ, and
  4. whether the work meets the definition in Regulation CR2 of public accountancy work, and
  5. the client had been informed that a Scheme was in place.

CA ANZ’s Professional Standards Scheme now in effect

Go back this main page for more information.

Find out more

Related downloads

Search related topics