Professional indemnity

Professional indemnity insurance

Professional indemnity insurance indemnifies professionals against claims or losses arising out of acts, errors and omissions connected to the ordinary course of their business activities. Often claims arise as a result of their negligence, whether tortious, contractual or both, provided that such negligence is in respect of the policyholder’s professional activities. Professional indemnity insurance also covers the costs of defending and investigating claims notifications.

For the essential concepts relating to professional indemnity insurance, such as the types of loss covered and how it operates, see Practice Note: Professional indemnity insurance—essentials.

For guidance on the professional indemnity requirements for different types of professionals, see our suite of Practice Notes produced in partnership with Clyde & Co:

1. •

   Professional indemnity insurance—solicitors

2. •

   Professional indemnity insurance—architects

3. •

   Professional indemnity insurance—accountants and auditors (ICAEW)

4. •

   Professional indemnity insurance—surveyors and valuation professionals (RICS)

5. •

   Professional indemnity insurance—FCA-regulated professionals (including IFAs and brokers)

Professional indemnity insurance policies usually do not respond to situations where a director of the insured has acted dishonestly or fraudulently, or condoned the fraudulent activities of their employees. However in certain circumstances, some professional