Professional Indemnity Insurance - Benefits And Limitations

Most of the time people get confused between the professional indemnity (PI) insurance, general liability insurance and product liability. Professional liability insurance that provides coverage for insurance professionals, as well as companies and individuals for any negligence, error or omission has occurred, and professional obligations. Professional liability insurance is different from the other two, that the professional responsibility, intended exclusively for professionals such as engineers, doctors, architects and lawyers, which provides consulting services to its customers.
Product liability is the legal responsibility applicable to a manufacturer for its customers of its products. Product liability associated with the manufacture of any product of negligence. This includes faulty or defective components, manufacturing process or execution. Product liability is primarily caused by the failure to meet production standards of the manufacturer, resulting in the production of defective components and products.

Other than the general liability and product liability, professional liability insurance, but the negligence that apply to professional services and consultations made the most of knowledge workers. Professional liability insurance policy covering the services of a professional knowledge of negligence made to his client, which covers negligence, errors or omissions in the performance of professional services. These occupations include calculations, design, consulting, feasibility studies, maps and supervision, and preparation of specifications.

Professional liability insurance protects and insured, all employees and directors against any liability arising due to malpractice. Professional liability covers legal liability to compensate a third party who has suffered loss, injury or damage caused by the neglect of service activities and professional training as a result of an act, error, negligence or omissions.

Professional liability insurance coverage is a third, which is just a cover liability insurance, not a property offered to the insured against third party insurance claimants. Professional liability insurance covers liability early in the design phase, provided that the condition does not take effect before delivering the product and the product has left secure. Professional liability insurance is different from product liability and general liability coverage and provides insurance coverage in effect for any breach of a professional.

Professional indemnity insurance (PII) is responsible for insurance and protection business, where there is a claim for damages due to loss (financial / damage the image) as a result of their professional negligence. Previously, accountants, auditors, engineers, lawyers and architects were the major buyers of those insurance policies. However, changes in the definition and dynamics of demand for professionals are now required PII, including those engaged in other sectors. Professional is an intelligent man who is able to offer specialist advice and service. Thus, IT consultants, engineers, doctors, artists, photographers, marketing and business consultants are now in your professional interest in the protection of PII.


I am a content writer and writing insurance articles for past 4 years.

Ammenda Michle

For further information on Professional Indemnity Insurance and PI Insurance for UK contractors and professionals please contact Coulson Pritchard Associates directly on 0870 752 5455 , 01480 470220 or visit at www.coulsonpritchard.com