Professional Indemnity insurance

The purpose of Professional Indemnity insurance (also called Errors and Omission Liability insurance) is to protect the professional person against the legal liability to compensate any persons who may have suffered monetary loss as a result of their own professional oversight or that of their employees, in the course of the business.

This coverage is not included in general Public Liability policy because it does not concern bodily injury to persons or loss of or damages to material property.

Professional Liability insurance was historically restricted to few professions like solicitors, accountants, doctors, architects and engineers but it is now extended to other professions like advisers and consultants.

Professionals, consultants and advisers commonly earn income by charging fees for their services. However, even where the advice given does not involve a fee, there may still be a liability for errors and omissions, as it may be the case for charities, museums or trade unions.

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