Professional indemnity (PI) insurance is also known as errors and omissions insurance and is designed to cover a business against claims made by clients for losses caused by negligence, mistakes, or omissions.
Professional services include advice, design, consultancy and any other service carried out for a client.
Cover typically spans a range of exposures such as:
Professional negligence. Mistakes, errors, or omissions in your professional services or advice.
Breach of professional duty. Ailure to meet contractual obligations or industry standards.
Misrepresentation. Unintentionally providing misleading information.
Defamation. LIbel or slander in the course of your work.
Loss of documents or data. Accidental loss or damage to client documents.
Legal defence costs. Costs incurred in defending a claim.
Breach of intellectual property. Unintentional infringement of copyright, trademark, or intellectual property.
Why you need PI insurance
Our PI cover spans a wide range of risks such as:
Legal defence costs
Compensation or settlement sums
Investigation expenses
Why you need Elmore
Errors and omissions
Negligence
Civil liability
Legal liability
Mitigation costs
Loss of documents
Court costs
We also specialise in cover for emerging sectors such as virtual asset service providers (VASPs) under the Markets in Crypto-Assets Regulation (MiCA). Cover is provided for claims by customers, claims for failure of regulated services, and claims for failure of technology.
Professional indemnity FAQs
Who should take out professional indemnity cover?
Any business of any size that has a contractual relationship with other businesses or third parties should consider professional indemnity insurance. This includes contractors, freelancers and other service providers who offer advice, consultancy or design.
What does PI insurance usually NOT cover
- Intentional wrongdoing or fraud
- Bodily injury or property damage
- Contractual liability beyond professional duty
- Claims or circumstances known before the policy began
Is professional indemnity insurance a legal requirement?
Professional indemnity insurance is not a legal requirement for businesses in the UK. However, it may be required by clients, trade bodies, for professional memberships, or by regulators.
What PI risks should I address for my business?
Professional indemnity risks vary depending on the business. For example:
- For consultants and advisors: risks such as advice-based errors, breach of duty, and breach of confidentiality
- For design and technical professionals: the risk of faulty/sub-standard designs and calculations
- For financial and legal services: the risk of giving incorrect financial advice, errors, or breach of regulations
- For marketing, media and creative businesses: the risk of copyright infringements, misleading campaigns, or reputational damage
Regardless of the business, a good PI policy would cover:
- Negligence or breach of professional duty
- Breach of confidentiality
- Defamation and libel
- Loss of documents or data
- Intellectual property infringement
- Costs of defending claims
Why do I need an insurance broker like Elmore?
Our insurance specialists will:
- Thoroughly review your business risks
- Tailor cover for your specific industry and risks
- Provide comprehensive claims support