Features of Professional Indemnity Insurance

Professional Indemnity Insurance, also known as Errors and Omissions Insurance, is a type of insurance policy designed to protect individuals and organizations from financial losses arising from claims of professional negligence or failure to perform professional duties. Here are some of the key features of Professional Indemnity Insurance:

  1. Coverage for financial losses: The policy provides coverage for financial losses suffered by clients or customers as a result of errors, omissions, or other professional negligence by the policyholder.
  2. Defense costs: The policy covers the cost of defending against a claim, including legal fees and other expenses related to the defense.
  3. Professional services: Professional Indemnity Insurance is designed for professionals, such as consultants, accountants, engineers, and architects, who provide services to clients and are at risk of being sued for professional negligence.
  4. Third-party claims: The policy provides coverage for third-party claims made against the policyholder, such as a client or customer.
  5. Policy limits: Professional Indemnity Insurance typically has policy limits that determine the maximum amount the insurer will pay in the event of a claim.
  6. Exclusions: The policy may exclude certain types of claims or activities, such as fraud or intentional acts, from coverage.
  7. Worldwide coverage: Some Professional Indemnity Insurance policies provide coverage for work performed anywhere in the world, subject to policy terms and conditions.

It's important to note that Professional Indemnity Insurance is not a substitute for good business practices, but it can provide financial protection and peace of mind in the event of a claim being made against the policyholder for professional negligence.

Protection against compensation claims

There is no limit in the UK as to how much a compensation claim could be. This means a serious case could be in the thousands or even millions of pounds. Professional indemnity insurance protects you by covering the legal defence costs of a claim and ultimately will pay compensation awarded against you if you are at fault.

Professional indemnity insurance from £1-10 million

Depending on your profession, your turnover and your industry, you’ll want different levels of public liability and professional indemnity insurance. That’s why we’re flexible on the different aspects of our cover and each limit is set by you. We offer professional indemnity insurance ranging from £1 million to £10 million with worldwide cover and jurisdiction available for many professions. Interest free monthly payments are available from some Insurers

What does professional indemnity insurance cover you for?

Your legal defence

If a client does bring a claim against you, you’ll need to defend yourself in court whether their claim is justified or not. PI will cover the legal expenses associated with the case.


If a client wins their case against you, they are likely to be awarded the sum of money they lost as a result of your advice. In addition, they may be awarded compensation. Both of these are covered by a PI policy.

Run off insurance

If your firm is ceasing to operate, you may still have a claim pop up unexpectedly in the future. Run off insurance is to ensure these claims are still covered and you are not left liable.