Professional Indemnity Insurance

Professional Indemnity insurance (PI) provides protection against your legal liability to compensate third parties who have sustained loss or damage due to your alleged professional negligence.

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Professional Indemnity Insurance

Professional Indemnity insurance (PI) provides protection against your legal liability to compensate third parties who have sustained loss or damage due to your alleged professional negligence.


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What is Professional Indemnity Insurance?

Professional Indemnity Insurance, also known as PI Insurance or Errors and Omissions (E&O) Insurance, is a type of insurance that protects professionals, such as architects, accountants, consultants and engineers, from financial losses resulting from errors or omissions in their professional services. It covers legal costs and any settlements or judgments that may result from a client's claim of negligence, errors, or omissions in the professional's work. This insurance provides a financial safety net for professionals who may be held liable for damages caused by their work

Professional indemnity insurance is usually arranged on a ‘claims made’ basis meaning it’s the policy in force at the time of notification of a claim that responds. The cause of the claims may have occurred months or even years before. Continuing to maintain business insurance cover is vital as by lapsing cover or reducing the scope/level of cover might leave the policy holder exposed.

Who needs Professional Indemnity Insurance?

Many different types of professionals may need Professional Indemnity Insurance, depending on the nature of their work and the potential risks they may face. Some examples of professionals who may need this type of insurance include:

  • Solicitors and legal professionals: To protect against claims of legal malpractice or negligence.
  • Architects and engineers: To protect against claims of design errors or construction defects.
  • IT consultants: To protect against claims of data breaches or system failures.
  • Accountants and financial advisors: To protect against claims of financial mismanagement or errors.
  • Real estate agents and brokers: To protect against claims of negligence or errors in the sale or purchase of property.
  • Advertising and marketing professionals: To protect against claims of defamation or copyright infringement.
  • Consultants of any kind: To protect against claims of errors or omissions in their advice or recommendations.
  • Medical professionals: To protect against claims of malpractice or errors.

How much Professional Indemnity Insurance do I need?

The amount of professional indemnity insurance you need can vary depending on your industry and the specific risks associated with your profession. It is generally recommended to have enough coverage to protect your assets and financial stability in case of a claim. Here at PIB, our specialist PI team can consult with you in order to determine an appropriate amount of coverage for your business. We will take into account your specific needs, the nature of your work, and any legal requirements or industry standards.

Typical features of Professional Indemnity cover would include:

  • Civil liability insurance coverage arising from breach of professional duty.
  • Coverage for dishonest, fraudulent or malicious acts by former or present employees.
  • Unintentional breaches of copyright or confidentiality.
  • Loss of or damage to documents in the custody and control of the policy holder.
  • Compensation for court, arbitration, adjudication attendance.
  • Criminal Prosecution Defence Costs.

Is Professional Indemnity Insurance the same as Public Liability Insurance?

Professional Indemnity Insurance and Public Liability Insurance (PLi) are two separate types of insurance that serve different purposes.

Professional Indemnity Insurance protects professionals from claims related to their work, while Public Liability Insurance protects businesses from claims related to injuries or damage caused by their operations. While they are different types of insurance, some businesses may require both, depending on their operations and the nature of the risks they are exposed to.

The intent of a Professional Indemnity Insurance cover policy is to protect the policyholder in the event that professional services (advice/guidance/design etc) provided cause a third party to suffer a financial loss. The majority of policies will cover the third party’s financial loss but also the costs (for example legal, expert fees) incurred by the policyholder in defending/settling claims.

Any business or individual offering specialist advice/guidance, or marketing themselves as having a greater than normal degree of knowledge in a specific area may be liable to a third party, if that third party suffers a financial loss as a consequence of relying on that advice. It is worth noting that payment for the advice/guidance does not necessarily need to have been received for liability to occur.

Why Choose PIB Insurance

Any business or individual providing services, advice or guidance upon which third parties rely should prioritise obtaining suitable Professional Indemnity Insurance from a broker.

PIB Insurance are a leading business insurance broker here in the UK, working with a chosen panel of insurance providers. We work with a wide range of business industries, offering an extensive range of insurance products and cover to suit your unique business venture.

Our Leicester Office are specialists in providing Professional Indemnity insurance.

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