Professional indemnity insurance

August 29, 2023

The remedial compensation practice for (professional) mistakes made has been present even before the introduction of Professional Indemnity Insurance which came in place around the 1700s in London. Professionals are always exposed due to harm or errors they could make in the fields of their work, which could in turn result in them being sued by their clients.

What are professionals
Professionals are individuals or firms who offer specialist services or advice to clients, such as Doctors, Accountants, Insurance Brokers, Nurses, Engineers, Architects, and many others.

What is Professional Indemnity (PI)
Due to the increased reliance of businesses on the contracted services provided by many occupations, the term “Professional” and its scope are demarcated. These days, the terms of contracts people get into with specialists, map out their rights. In other words, PI is an insurance product designed to provide indemnity to professionals following litigations arising due to their errors, negligence, omissions, and breach of professional duty. It can furthermore cover business interruption, legal fees incurred from being sued, and financial losses due to defamation.