Professional Indemnity Insurance

In Plain Terms

Professional indemnity insurance protects professional services providers (including their principals and employees) against legal costs and financial claims from clients alleging professional negligence, errors or omissions.

01
Engagement

You give specialist advice, a design, or expertise.
02
Alleged Failure

A client alleges negligence, an error, or an omission.
03
Claim

Legal costs begin before liability is ever established.
04
Protection

The policy funds the defence and any award.

Key Coverages

Legal defence costs: Pays for lawyers, court fees, and investigation expenses during a lawsuit.
Damages and settlements: Covers financial compensation awarded to a client or agreed upon in a settlement.
Professional negligence: Addresses financial losses caused by careless mistakes, bad advice, or missed deadlines.
Unintentional errors: With policy extensions, this insurance can handle issues like unintentional defamation, intellectual property infringement, or lost documents.

Who Needs It

Service-based professionals who provide specialized advice, designs, or expertise.
Common industries include accountants, IT consultants, architects, engineers, management consultants, para-medicals, financial services providers, securities firms, asset managers, and real estate agents.
Some professions—such as medical doctors, lawyers, accountants, and architects—are legally required to maintain coverage to practice.