Professional Indemnity Insurance – What Does It Cover?


Ensuring that the clients of a business are satisfied with what they have been provided is a crucial item for any business. However, dissatisfaction can result just as easily, and the costs of addressing the potential Essentially, professional indemnity insurance is for when a client of your business claims to have had injury or financial loss caused by a mistake that was made by you after giving advice or providing professional services.

Professional indemnity insurance is a critical service for businesses who may be at risk when providing professional advice or services. In some cases, it may be legally required to have professional indemnity insurance. Professional indemnity insurance is a must for occupations such as accountants and bookkeepers, IT specialists, advertising agencies and management consultants, and even those involved in trades like electricians or plumbers.

Many businesses employ professional indemnity insurance to ensure that their legal costs are covered in the case of a complaint of alleged negligence or breach of duty arising from an act, error or omission in the performance of professional services. These costs that can mount during the course of defending against the complaint can be significant and cost money, reputation and time for your business.

Some of these unexpected costs that professional indemnity insurance can cover you against include damages, claims, public relations consultants and more.

What May Be Covered By Professional Indemnity Insurance?

Depending on the insurance provider, professional indemnity insurance may cover:

  • Breach of duty
  • Breach of privacy or confidentiality
  • Intellectual property infringement
  • Defamation
  • Lost or damaged documents
  • Reputations repair
  • Claims investigation costs.

What May Not Be Covered By Professional Indemnity Insurance?

  • Existing circumstances
  • Intentional damage
  • Contractual obligations
  • Bankruptcy

Insurance providers may cover more for businesses when it comes to professional indemnity, depending on their policy provisions. Always speak with a professional for a consultation about what you may specifically require from your insurance.