What is Professional Indemnity Insurance?
PI insurance generally indemnifies the insured for a claim that is first made while the policy is in force as a result of a breach of professional duty in respect of the conduct of the professional business.
This class of insurance is written on a 'claims-made basis'. This means that the policy provides cover for claims made during the period of insurance in respect of professional services provided after the retroactive date, subject to the terms and conditions of the policy in place at the time. The retroactive date will be specified in the policy schedule.
All PI insurance policies will have a 'limit of indemnity' and a 'deductible' or ‘excess’. The limit of indemnity is the maximum amount that the insurer will pay for any one claim.
The deductible applies for each claim such that the amount of each claim up to the deductible must be paid by the insured.
More Information can be found on our common questions page.