Professional Indemnity Insurance

Professional Indemnity (PI) Insurance protects businesses and individuals who provide professional services, advice or designs. It covers the cost of legal defence and compensation if a client alleges your work caused them financial loss due to a mistake, negligence or breach of duty. 

What Does Professional Indemnity Insurance Cover?

Depending on the policy, a PI insurance policy could cover the following.

Negligence

Claims arising from mistakes or oversights in your work (e.g. incorrect advice, poor design or calculation errors)

Breach of Professional Duty

If you fail to meet industry standards or contractual obligations

Defamation and Libel

Unintentional damage to someone's reputation through written or verbal statements

Breach of Confidentiality

Accidental disclosure or mishandling of sensitive client information

Loss of Documents

Physical or digital loss of client documents you are responsible for

Intellectual Property Infringement

Using copyrighted materials (e.g. images, content, software code) without proper permission

Legal Costs and Expenses

Covers your defence, settlements and compensation if you’re found liable

What a Claim Might Look Like

1. Incorrect Professional Advice

Scenario:
An accountant gives incorrect tax advice that leads to a client receiving a large HMRC penalty.

Outcome:
The policy covers legal costs and the compensation owed to the client.

2. Design Error

Scenario:
An architect submits plans with a structural miscalculation, requiring rework and delays. The client sues for additional costs.
Outcome:
Professional Indemnity Insurance covers the claim and associated legal fees.

3. Breach of Confidentiality

Scenario:
A consultancy firm mistakenly emails a client’s sensitive data to the wrong recipient.
Outcome:
The insurer pays for legal defence, investigation and any damages for breach of confidentiality.

4. Copyright Infringement

Scenario:
A marketing agency uses a copyrighted image in a client’s campaign without proper licensing.

Outcome:
The photographer sues and the policy covers the settlement and legal fees.

We Would Love to Hear from You

Let’s talk about how we can improve your coverage, service, and premium. Simply fill in your details, and we will be in touch within 24 hours to see if we can help.