Professional Indemnity Insurance
Secure Your Reputation. Protect Your Practice.
What is Professional Indemnity Insurance?
Professional Indemnity Insurance is a critical form of business protection that covers you when your professional advice or services result in a client’s financial loss. In the event of an error, omission, or act of negligence, this insurance ensures your business remains protected against legal and compensation claims. Whether you’re offering strategic advice, designing creatives, or handling sensitive client data, a single mistake could cost your client—and expose you to liability. Professional Indemnity Insurance from CoverBee gives you peace of mind and financial security, allowing you to focus on your work without fear of costly legal consequences.
What Professional Indemnity Insurance Covers:
Professional indemnity insurance provides coverage for financial losses caused by errors, omissions, or professional negligence in your services. This includes situations such as incorrect medical diagnosis, poor business strategies, breach of confidentiality, or even loss of sensitive client data. It can also protect you against claims involving intellectual property violations, misleading advice, or defamation. If your client suffers a monetary loss due to a mistake in your work, this insurance helps cover legal costs and compensation, shielding your business from serious financial damage.
Who Needs Professional Indemnity Insurance:
This insurance is essential for professionals who offer advisory or consultancy services, especially in legal, financial, IT, healthcare, and design fields. If your business involves handling client data, managing intellectual property, or delivering specialized advice, you are at risk of being held liable for errors. Consultants, doctors, architects, software developers, and marketing professionals are just a few examples of those who should consider professional indemnity insurance to protect their reputation and financial stability.
Professional Indemnity Insurance FAQs
Professional Indemnity Insurance protects professionals like doctors, lawyers, consultants, and
architects against legal claims arising from errors, omissions, negligence, or breach of duty in
their services.
Any professional who offers advice or services to clients should consider this insurance. It is
essential for doctors, engineers, chartered accountants, financial advisors, IT consultants, and
more.
It typically covers:
● Legal defense costs
● Settlements or compensation claims
● Errors, omissions, or negligence in service
● Breach of confidentiality
● Defamation or libel (in some cases)
No. Professional Indemnity Insurance does not cover intentional fraud, criminal acts, or illegal
activities.
In some professions (like doctors, lawyers, or CA firms), regulatory bodies may require it. Even
if not mandatory, it's highly recommended to protect against costly legal claims.
The premium depends on factors like:
● Type of profession
● Level of risk involved
● Sum insured (coverage amount)
● Past claims history
● Location and business size
Most policies are issued for one year and can be renewed annually.
Some policies offer retroactive coverage or extended reporting period options, which can
protect you even after retirement or policy expiration (if claims arise from past work).