Professional Indemnity and Crime


PI insurance essentially provides the named insured in the policy with indemnity in respect of legal liability arising out of the practice of the profession. This normally arises as the result of negligent acts, errors or omissions. Claims do arise in the course of rendering professional services and thought needs to be given to the risk exposure, risk management and risk transfer.

PI insurance has to do with understanding the risks inherent in working as a professional, and taking adequate steps to protect against the consequences of these risks. It is vital for the professional to understand the risks and to be proactive in protecting against any exposure, financial or otherwise.

The world in which professionals operate is one of ever increasing pressure, with demands for quick answers and cost effective solutions. This pressure can lead to errors and omissions by the professional which can and does give rise to claims. This factor together with the litigious nature of our society underscores the need for PI insurance, both for clients and professionals.

Circumstances which give rise to professional liability claims are seldom clear cut – they often give rise to disputes as to the nature and extent of the responsibility. In cases where the professional is blameless he or she may nevertheless be drawn into lengthy disputes which can be both financially and emotionally draining. PI insurance provides the professional and the client with peace of mind and financial protection.