Glossary · Document types

Professional indemnity insurance

Professional indemnity (PI) insurance covers claims arising from professional advice or services that cause a client financial loss.

Full definition

Professional indemnity insurance is defined as: Professional indemnity (PI) insurance covers claims arising from professional advice or services that cause a client financial loss.

PI is expected from consultants, designers, architects, IT advisors, accountants and anyone else whose deliverable is advice or a specification rather than physical work. Limits typically start at £1m and rise with contract value.

Because PI usually operates on a claims-made basis, the policy in force when a claim is notified matters more than the one in force when the work was done. Some clients require run-off cover after contract end.

Questions and answers

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