Professional Indemnity Calculator
Enter fee income, claims history, settlement size and premium.
Expected annual claim cost
β
Enter values above
Expected claims over 10 years
β
Cost over 10 years
β
Premium over 10 years
β
Net benefit of cover
β
Premium as % of fee income
β
Worked example
With the default inputs shown below, this calculator returns the following results:
| Input | Value |
|---|---|
| Annual fee income ($) | 400000 |
| Limit of indemnity ($) | 1000000 |
| Expected claims per 10 years | 1 |
| Average defence and settlement ($) | 120000 |
| Annual premium ($) | 3000 |
| Result | Value |
|---|---|
| Expected annual claim cost | $12,000 |
| Expected claims over 10 years | 1 |
| Cost over 10 years | $120,000 |
| Premium over 10 years | $30,000 |
| Net benefit of cover | $90,000 |
| Premium as % of fee income | 0.75% |
Values shown are produced by this page in your browser; change any input to update them.
How to use the Professional Indemnity Calculator
- Annual fee income ($) β default 400000
- Limit of indemnity ($) β default 1000000
- Expected claims per 10 years β default 1
- Average defence and settlement ($) β default 120000
- Annual premium ($) β default 3000
- Press Calculate to update the results instantly.
Frequently asked questions
For most professions it is a condition of membership or of a client contract rather than a legal requirement, but many clients will not engage a supplier without it.
The full cost of a claim, including the other sideβs legal costs. A limit set at your largest single fee is almost always too low; set it at the largest loss your advice could cause.
Insurers price on your own record. A single claim can double the premium for several years, and two can make cover difficult to obtain at all.