A professional indemnity insurance claim is a request for compensation made by a client who has suffered a financial loss due to the negligence of a professional service provider. Professional indemnity insurance is a type of liability insurance that protects professionals from claims of negligence, errors, or omissions in the performance of their professional duties. Examples of professionals who typically hold professional indemnity insurance include lawyers, accountants, architects, engineers, and doctors.
Professional indemnity insurance is important because it can help to protect professionals from the financial consequences of a successful negligence claim. If a client is successful in their claim, the professional could be held liable for damages, which could include the client’s financial losses, legal costs, and any other associated expenses. Professional indemnity insurance can help to cover these costs and can also provide the professional with legal representation.
