Product: Professional Indeminity


This policy indemnifies a professional person on body for legal liability to third party injury, damage or loss due to his/her negligence or that of his employees which safe-guards losses arising from judgement in technical decisions. In other words, it covers damages from breach of duty made during the period of cover either by error, omission or negligence.


Professional Indemnity Insurance provides cover for claims brought against the policy holder due to their (acts of) professional negligence. It is also the kind of insurance that protects business from financially crippling and often reputation-damaging claims by dissatisfied clients.

There are three (3) types of P.I policy.

1. Negligent Act, Error or Omission: This indemnifies the policy holder against loss/ circumstances incurred only as a result of their negligent act, error or omission in carrying out the policy holders business. This is the narrowest form of cover.

2. Breach of Duty: A typical PI policy will provide indemnity to the insured against loss arising from any claim or claims for breach of duty which may be made and reported to the insurers during the policy period by reason of any neglect, error or omissions committed in the conduct of the insured’s professional business.

3. Civil Liability: These covers such areas as breach of contract, libel and slander because the operative clause of a civil liability policy is so wide, there is normally a long list of exclusions in order to exclude liabilities that should be covered elsewhere.