Professional Indemnity
Your services are incremental to your clients. But what happens if your advice backfires?
What is Professional Indemnity Insurance?
Also known as Errors and Omissions (E&O), Professional Indemnity (PI) Insurance can be highly beneficial to firms that provide advice or professional service to clients. Should a lawsuit be filed against you by a client for enticing a deal that turns into a mistake that leads to financial loss, compensation can claims be covered and mitigate the damage. The policies can differ from one business profile to another but ultimately the coverage will protect you from financial implications from lawsuits.
What does Professional Indemnity Insurance cover?
Typically, the coverage for PI is as follows:
- Compensation payments (usually take into account client’s financial loss)
- Legal fees (if client claims against you)
- Unintentional breaches of confidentiality or copyright
- Loss of documents or data
- Bodily injury directly from negligence in performing duties
- Financial loss directly from negligence in performing duties
- Property damage directly from negligence in performing duties
How important is Professional Indemnity Insurance?
A PI policy not only protects your company from the risks that entails from your business activities, but also gives yourself, your employees and your clients a peace of mind. When your employees perform their jobs, and rightly or wrongly are accused of misguidance and are sued for negligence, the legal costs can rise fast. Hence, a PI policy can help with compensation, defence costs and reputational protection.
Who needs Professional Indemnity Insurance?

How much does a Professional Indemnity Insurance policy cost?
There are a number of factors affecting the cost of purchasing a PI policy. This includes:
- Industry/Field of work
- Policy Limits
- Claims History
Deciding how much coverage you need for your PI policy requires careful analysis in terms of lawsuits possibilities from your scope of work and the extent it can implicate.