R2,000,000 limit
R2,000,000 Professional Indemnity cover
A step up for growing practices whose contract values or consequential loss exposure have outgrown the R1,000,000 tier.
Who typically requests this limit
- Growing practices with at least one client contract in the R1,000,000–R2,000,000 range
- Professions with moderate consequential-loss exposure per engagement — quantity surveyors, IT consultants and project managers on mid-size projects
- Practices that have taken on their first provincial government or larger corporate client
- Multi-principal practices where combined exposure across concurrent projects has grown beyond a single-practitioner risk profile
Contractual & tender requirements
- Increasingly specified as the floor by mid-size corporate clients and provincial (as opposed to purely local) government tenders
- Common minimum for larger property transactions, mid-tier audit engagements and IT implementation contracts
- Worth confirming against any Master Service Agreement or panel appointment terms, which frequently set limits independently of general market practice
Premium implications
Premium at this tier becomes more sensitive to claims history and the split of your work across higher-exposure activities (structural design, audit sign-off, system implementation, and similar). Two practices with identical turnover can see materially different pricing here depending on the nature — not just the value — of the work performed.
Limit vs excess: what's the difference?
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.
Aggregate vs each-and-every claim
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.
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Other limits of indemnity