Professional Indemnity

Professional Indemnity (PI) Insurance, or Errors and Omissions, protects self-employed professionals, businesses or organisations against legal liability to their clients and other third parties from the provision of professional services.

Any type of professional who provides a service, advice or work for clients can benefit from this cover, such as IT consultants, advertising agents, architects, employment agencies and travel agents. It is an industry essential for some occupations such as doctors, solicitors and accountants. Not-for-profits can also be sued for giving poor advice.

If a professional trades as a sole trader or in a partnership with unlimited liability, they can lose everything, including their home. Directors, employees, principles and partners are all at risk of having to pay damages, as well as legal costs. Defending even a frivolous or malicious claim can be very expensive.

A customer may contractually stipulate that you are insured. Membership of professional bodies is frequently conditional upon holding this cover.