What professional indemnity covers
PI protects your agency when a client alleges your work caused them financial loss — a missed deadline, a bug that took down their site, wrong strategic advice. It pays legal defence costs and damages.
Why R1M is usually not enough
Most digital agencies default to R1M PI. For a 5-15 person team delivering R500K+ engagements, that ceiling is exhausted by a single serious claim once legal costs are added. R5M is a more realistic baseline.
Common myths
- "My contract limits my liability." True — but the client can still sue, and PI pays your defence.
- "I only need PI for consulting work." Build work carries the same exposure.
- "Freelancers do not need PI." Solo consultants are personally liable.
What to negotiate
- Retroactive date covering past work
- Run-off cover for when you exit an engagement
- Worldwide jurisdiction if you serve international clients