Professional Indemnity and Errors & Omissions Insurance
Understand how professional indemnity and errors-and-omissions coverage relate to advice, services, mistakes, and client disputes.
Business insurance is most useful when it reflects how a business actually operates. A freelancer, landlord, retailer, and software company may need very different protections even when their revenues are similar.
Professional indemnity and errors-and-omissions policies commonly respond to allegations that professional advice, design, code, or services caused a client financial loss, subject to the policy. They are not a substitute for quality controls or a guarantee that every dispute is covered.
Ask whether the policy is claims-made, when a circumstance must be notified, whether prior acts are covered, and whether defense costs reduce the limit. Check exclusions for known disputes, contractual promises, cyber events, bodily injury, intellectual property, and regulated work.
Keep a written scope of work, approvals, change requests, delivery records, and complaint history. Early notification is often important, but the exact duty depends on the wording. Obtain professional advice when a contract or claim is significant.
Quick checklist
- Compare the same limits and assumptions with each provider.
- Read exclusions, waiting periods, deductibles or excesses, and claim conditions.
- Keep the quote, schedule, wording, receipts, and communications together.
- Recheck the policy after a material change in your circumstances.
Editorial note: This is general educational content. It is not personal financial, insurance, legal, tax, or medical advice. Rules and policy wording vary by jurisdiction and provider.