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What is Professional Indemnity Insurance “PI”?

If your business provides advice to clients, or provides professional services, you run a legal risk. 

This is where professional indemnity insurance comes in – as an insurance cover and a safety net aimed at providing protection against financial loss resulting from claims of negligence made by a dissatisfied client.

A PI policy covers you as an individual professional against the legal costs in defending you, as well as any damages you may have to pay as compensation for any actual or alleged negligence or breach of professional duty.

Who needs it and why?

Despite your best efforts mistakes do happen. Even if you are confident in the quality of your work any professional is vulnerable to a claim or allegations of negligence when their professional advice or services fail to meet a client’s expectations or their contractual commitments, even if they are only “perceived” failures.

Once a client commences legal action, you must be in a position to hire the very best legal resources to defend you or you will very likely lose the action. The consequences could be crippling. The cost of expert legal resources is extremely high, for example a single day in court could set you back by R 250 000, without taking pre-trial attorney costs into account. And that is just your costs without the damages if you are found liable and as well as the claimants costs.

What does a PI policy cover?

In a nutshell the PI Policy covers:

- The Cost of the best legal defence and claim mitigation team
- The damages and claimants costs if the action is lost.

Your PI policy cover as a SAIT member

Members of SAIT enjoy the following coverage as part of their membership:

  • R5 million full indemnity for GTPs and MTPs
  • R2 million tax advice indemnity for Tax Technicians. 

Meet the PIFRS team:

If you would like to increase your cover, please contact Taisa for further assistance.

For more information, visit:


PIFRS is a registered financial services provider.

Hollard is a registered financial services provider


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