Professional Indemnity (PI) Insurance

Professional service providers (PSPs) owe legal duties to clients and other third parties in conducting their business.

Professional indemnity (PI) insurance covers PSPs for claims against them for compensation for loss caused by a breach of the PSPs' professional duties.

Policies can cover individuals or a corporation and its directors and employees.

A PI policy typically covers damages, third party legal costs and defence costs.

Whilst PI insurance is generally procured by the more traditional professions such as financial service providers, architects, engineers and lawyers, any party who is providing advice and/or service of a skilful nature according to an established discipline may have an exposure and should be considering their need for this type of cover.