Professional indemnity insurance protects contractors or individuals working under contracts against legal liability towards their clients for injury, loss, or damage, arising from his own professional negligence or that of his employees. Most professionals carry professional indemnity cover, as compensation sought by clients can sometimes be high enough to land them down in deep trouble. If you are a contractor, you should certainly opt for a professional indemnity cover to protect your business against compensation sought by your clients in the event of any unforced error has resulted in substantial losses by the client. Professional indemnity insurance will also cover any legal costs.