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Professional indemnity insurance cover

If you’ve been asked to buy cover for a particular contract or recommended to have professional indemnity insurance, but you are still a little unclear about exactly what this is or how it works then hopefully Hensure can assist.

Professional indemnity insurance cover is often referred to as PI Insurance (PI ) or Professional liability insurance (PLI). It can also be referred to as errors and omissions (E&O) insurance.

Traditionally the term `professionals` referred to people who worked within professions such as accountants, insurance brokers, solicitors, engineers, surveyors and architects.

This term now however covers many more businesses and individuals who provide a service. For instance contractors and consultants, web designers and developers, design & construct firms, media, advertising, marketing consultancies, business and management consultants, project and interim managers, environmental consultants, acoustic engineers and many more are now considered to be professionals.

PI (Professional Indemnity) insurance cover is liability insurance that covers the legal liabilities of your business in the event of a third party taking legal action against you. This could be claiming to have suffered a loss as a result of advice you have given in a professional capacity for example. Professional indemnity insurance cover protects your business against claims for loss or damage made by a client orthird party if youmake errors or are found to have been negligent in some or all of the services you provided. PI insurance will also cover the legal costs in respect of defending you and your company.

Even the most respectable companies can find themselves in dispute with a client over a mistake, error or omission.There can often be situations or even a dispute where no errors have been made. Having professional indemnity insurance helps you protect the business you have worked hard to establish.


Examples of areas of risk can be seen below;

  • Negligence, errors and mistakes.
  • A typical PI policy will provide indemnity against a loss arising from any claim for breach of duty.
  • Loss, damage or stolen data or documents belonging to your clients.
  • Unintentionally infringing on others’ copyrights, trademarks or any act of passing off.
  • Dishonesty: liability arising from the theft of your clients’ money or property.

In simple terms, professional indemnity insurance is financial protection against professional error.

Other Insurance Services

Professional Indemnity Insurance
Public & Employers Liability
Injury & Incapacity Benefit Insurance
Director & Officers Liability Insurance
General Office Insurance
Shops/Retail Insurance
Insurance For Property Owners
Bespoke Business Insurance
Contract Works Cover
Trade Liability Insurance

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