Professionals such as doctors, architects, lawyers, engineers, etc. are vulnerable to risks arising due to errors, omissions and professional neglect leading to legal action taken by the aggrieved party. Professionals can incur huge financial losses due to such actions and in such a scenario a professional indemnity insurance can come to their aid.

Though professional indemnity insurance for doctors is the most common indemnity cover availed, it is wise to be covered irrespective of your profession.

When can a Professional Indemnity Claim Arise?

There are several occasions when a professional indemnity claim can arise. Your customer or client can take legal action against you if you:

  • Fail to deliver the services promised
  • Are negligent in your occupation
  • Make any omissions in the scope of work
  • Provide the wrong work

All of these can result in injury, harm, death, or damage to property of your customer, client or patient (in cases of doctors). In such a case, the other party can file a claim against you for professional negligence. Such claims can have a negative impact on your reputation along with allied expenses such as defence and legal costs.

To claim the professional indemnity insurance one should ensure that the events leading to the claim should have occurred at retroactive period or we can say that during the insurance period.

How can a Professional Indemnity Insurance Help?



In such a scenario, a professional indemnity insurance can come to your rescue by providing for the legal and defence expenses. Note that these expenses can severely deplete your finances, leading to a disruption in cash flow and in a worst-case scenario, missing out on other essential financial commitments due to lack of funds.

A professional indemnity insurance claim can also help you pay compensation costs to the said party, making a claim, up to the stated amount in the policy. All in all, this insurance policy covers professional risks that are sometimes beyond your control or arising due to an error in judgement.

Who Needs this Insurance Cover?

While doctors are more vulnerable to professional risks as they deal with human lives, this cover must be availed by all professionals including chartered accountants, architects, management consultants, surveyors, advocates, solicitors and interior decorators among others.

This is because any mistake by these professionals can either escalate costs of a project or result in business losses for which they can be sued. In case of such an eventuality, a professional indemnity cover can protect your reputation as well as your assets.


It is essential to note some of the notable exclusions under a professional indemnity policy. This policy will not cover you for:

  • Any criminal act or violation of the law
  • Negligence in services under the influence of drugs or alcohol
  • Deliberate non-compliance of the statutory regulations
  • Conditions associated with HIV/AIDS
  • Infringement of copyright, trademark, patent, etc.