R1,000,000 Professional Indemnity cover

• Established small-to-mid-size practices without a single dominant, high-value client relationship
• Professionals who don't yet have a specific contractual limit requirement, but want cover that comfortably exceeds a typical claim
• Businesses in professions where consequential loss exposure per project is moderate rather than severe
• Practices renewing cover for the first time after starting at R500,000, once client contract values have grown

• The most frequently cited minimum in standard client engagement letters and smaller private-sector tenders
• Referenced as a typical adequate limit in guidance from several South African professional bodies, though this varies by profession and should be confirmed against your own registration requirements
• Often sufficient for FSPs in lower FAIS categories with a modest representative count and book size
• Should still be checked against your largest individual contract value, not assumed adequate by default

Your limit of indemnity is the maximum amount your insurer will pay out for a covered claim, or across all claims in the policy period if your limit applies in the aggregate. Your excess is the amount you contribute toward each claim before the insurer's payment applies. The two are set independently — you can hold a high limit with a modest excess suited to your risk profile, or accept a higher excess to reduce your premium. Choosing a limit does not determine your excess, and vice versa; both should be set deliberately based on your claim exposure and risk appetite.

Some PI policies apply the limit of indemnity “in the aggregate” — the total available across all claims made during the policy period. Others apply it “any one claim” (each-and-every-claim), where the full limit is available again for every separate claim, regardless of how many arise in the period. An aggregate limit can be eroded quickly if you face multiple claims in one year, while an each-and-every-claim structure gives broader protection for higher-claim-frequency professions, priced accordingly. Always confirm which structure applies before comparing quotes on the basis of limit alone.