By Tahir Abbas, Editor · Last updated 1 November 2026
Professional indemnity insurance protects professionals and advice-based businesses when a client claims your work cost them money: an error, an omission, missed advice or a missed deadline. A single claim can run to legal costs and compensation far beyond the fee you charged, which is why many professions and clients require it.
This guide explains what professional indemnity insurance typically covers, what it leaves out, who it suits, and how to compare policies before you buy.
What professional indemnity insurance typically covers
- Compensation for financial loss caused by your professional negligence
- Legal defence costs, even for claims that turn out to be unfounded
- Claims for errors, omissions and breach of professional duty
- Claims for defamation or intellectual property infringement, where included
What professional indemnity insurance typically does not cover
- Deliberate wrongdoing and fraud
- Claims known about before the policy started, unless covered by retroactive cover
- Bodily injury and property damage — that is public liability territory
- Fines and penalties, on most policies
Who professional indemnity insurance is for
Consultants, accountants, architects, engineers, designers, IT professionals, advisers and anyone who gives advice or delivers professional services. It is often a condition of professional membership and of winning client contracts.
How to choose and compare professional indemnity insurance
- Match the limit to the size of your contracts and the losses a mistake could cause
- Check retroactive cover for work done before the policy started
- Look at whether defence costs sit inside or outside the limit
- Confirm the policy covers your specific profession and services
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Sources and Disclosure
This guide is general information, not financial advice. Plan features described here are general and vary by insurer and state; always read the sample policy before you buy. For the rules governing insurance in your state, see the consumer resources of the National Association of Insurance Commissioners (NAIC). Disclosure: Being Insurance is an independent comparison site. We may earn a commission when you buy through links on this page. That never changes which companies we list or the order we present them in.