Professional Indemnity Insurance

Updated 2 years ago by QuentinC

Professional Indemnity insurance

Professional Indemnity provides coverage against legal liability arising from acts of negligence based on profession.

This insurance is important for people who have contracts with large clients who can afford to take legal action against you, has overseas contracts in the US, EU or Australia or outsourced work to subcontractors which you are liable for.

If you are doing work for a large client, you are most likely required to get this insurance. It covers the PR cost, legal defense costs and damages. 

Do take note that different insurers cover a breach of contract and errors by subcontractors differently.

You may also be advised  to add on more clauses and it is important to let your broker know about it.

Some additional clauses could be: 

  • Additional Liability: Adding another party into the policy
  • Waiver of Subrogation: Waives the right of the insurer to seek redress for losses from the negligent third party named
  • Umbrella Liability: Coverage for claims in excess your current liability coverage
  • Cyber Insurance: Covers for breach of PDPA, GDPR or any related cyber breach and error


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