Professional Liability Insurance (PLI Insurance)

Professional liability insurance is also known as PLI insurance, professional indemnity insurance or PI insurance.  It is a form of liability insurance that protects people and businesses who provide advice and professional services (the insured) to third parties from incurring the full costs of claims arising from the insured’s negligence or mistakes causing loss or damage to the third party’s property, business or reputation. Professional liability insurance also covers the legal costs to defend a claim made against the insured.

Professional liability insurance provides cover for people in a range of professions and the coverage is for failures, errors or omissions that are not covered in general liability insurance policies. Professional liability insurance can be required as a condition of a contract or agreement between a client and their professional services provider.

Some examples of the professions where professional liability insurance is commonplace include lawyers, barristers and solicitors, architects, valuers, consulting engineers, business advisors and consultants.

The policy wordings for professional liability insurance can be very different which makes the coverage they provide very different.  Policy wordings can also be designed to suit specific professions and the risks that individuals and businesses in those professions are exposed to.

If you are unclear about the requirements you may have for professional liability insurance, contact Austinsure for a no obligation discussion.