Professional indemnity insurance provides financial protection following negligent advice or poor architectural design given to third parties. For some professionals, such as architects, surveyors, lawyers, insurance brokers, financial advisers and accountants, the professional regulator usually requires minimum levels of professional indemnity insurance.
Many professional indemnity claims involve complex legal disputes and can be extremely costly. Cover includes compensation payable and legal costs, up to a specified policy limit.
Mandatory - most traditional professions have their own professional body and/ or are subject to government regulation who stipulate minimum requirements
Livelihood - for professionals, this is potentially their highest exposure to third party liability risk
Contractually - an increasing number of consumers are insisting that their professional advisors have insurance