What is Professional Indemnity (PI)?
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…’. Some policies are more tightly worded. Civil liability – Some PI policies go further than the standard cover and provide indemnity to the insured “for any civil liability whatsoever…” This covers such areas as breach of contract, libel and slander (some standard policies may include libel and slander as extensions to the policy wordings). 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 – otherwise things like Employers Liability (EL) and Public Liability (PL) might be covered. Breach of a contractual liability that is not caused by n
