What is Professional indemnity insurance?

Professional indemnity insurance is a form of liability insurance. It provides a professional person or business with an indemnity against claims or losses arising out of negligent acts, errors or omissions connected to the insured professional practice. Professional indemnity insurance typically also extends to the acts, errors and omissions of past employees.

Some professions, ie solicitors, accountants and architects, are required to have professional indemnity insurance by law. However, professional indemnity insurance should be held by any individual or business that provides advice, designs or services in a professional capacity.

Professional indemnity insurance is typically designed to cover claims for damages made by a client arising out of the ordinary course of the insured’s professional services.

For detailed guidance on the professional indemnity insurance requirements for different types of professionals, see Practice Notes:

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)

See also Practice Note: Liability insurance—essentials.

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