Professional indemnity insurance
Cover for professionals and firms against claims of negligence, error or omission in the advice or service they provide, including the cost of defending the allegation.
What it covers
Cover varies between insurers and plans. The policy wording is what decides whether a claim is payable, so read it before you buy.
- Claims alleging professional negligence, error or omission
- Legal defence costs and investigation expenses
- Damages awarded, or settlements agreed with the insurer's consent
- Breach of professional duty by you or by your employees
- Loss of documents, and unintentional breach of confidentiality, where included
- Vicarious liability for subcontractors, where the policy covers it
Key features
- Written on a claims-made basis: the claim must be made during the policy period, and the act must fall after the retroactive date
- Continuous renewal is what keeps past work covered; a gap can leave earlier work unprotected
- Limits per claim and in the aggregate, with defence costs inside or outside the limit depending on the wording
- Specific wordings exist for medical establishments, IT services and other professions
- Extended reporting or run-off cover for work done before you stop practising
- An excess applies to each claim: [DEDUCTIBLE]
How to buy it
Four steps, with an advisor you can reach at any of them.
Tell us about the risk
Tell us your profession, fee income, the services you provide, the contracts you sign and any claims or circumstances to declare.
Underwriting details
An advisor collects the information insurers need to price the risk, and flags anything missing.
Compare quotes
We ask our partner insurers to quote, and put the cover, conditions and premium side by side.
Proposal & policy
Pick a quote, complete the proposal form and KYC, and the insurer issues the policy.
Professional indemnity insurance: FAQs
Why does the retroactive date matter so much?
Because on a claims-made policy it decides how far back your past work is protected. Renewing without a break keeps the date intact; a gap usually resets it to the new start date.
Is deliberate wrongdoing covered?
No. Dishonest, fraudulent or malicious acts, and claims already known but not declared in the proposal, are excluded. The policy is for mistakes, not for misconduct.
My contracts limit my liability. Do I still need cover?
Contractual limits help but do not stop a claim being made, and defence costs start with the first letter. Many clients and tenders require professional indemnity cover regardless.
What is run-off cover?
Cover bought after a practice closes or a partner retires, so claims that arrive later about earlier work are still handled. It is arranged for a stated number of years.