Professional indemnity insurance (PI insurance) is a type of business insurance policy that protects companies against claims of financial losses resulting from alleged or actual negligence during the fulfillment of a professional service. It is also known as errors and omissions insurance (E&O) and professional liability insurance. Here are some key points about PI insurance:
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PI insurance provides coverage when a client sues you over errors, oversights, or alleges negligence in your work, even if the claim is unfounded.
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PI insurance covers legal costs and other expenses incurred in your defense, as well as damages or costs that may be awarded to your client.
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PI insurance is often required by certain professions as part of their respective industry bodys regulatory requirements, such as accountants, architects, and chartered surveyors.
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PI insurance is different from general liability insurance, which covers claims of bodily injury or property damage resulting from business activities.
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PI insurance is also different from cyber liability insurance, which covers cyber risks that almost every tech company faces.
In summary, PI insurance is a type of business insurance policy that protects companies against claims of financial losses resulting from alleged or actual negligence during the fulfillment of a professional service.
