PI insurance policies or professional indemnity insurance policies provide coverage for the claims against the policy holders in case of their professional negligence or errors.
PI insurance policy protects the policy holders against their negligent acts, errors or omissions, breach of duties and also civil liabilities that may have led to damages to their clients.
Some of the PI insurance policies also cover breach of contract, slander and libel, unintentionally infringement of other’s copyrights, broadcasting rights and trademarks. The insurance coverage also engulfs damages caused due to loss or stealing of data or documents that belong to their clients, thus breaching their privacy and confidentiality.
PI insurance should be taken by professionals who provide advisory or consultancy services to their clients. Some of the industries in which purchasing a PI insurance policy is most popular and necessary include financial and accounting services, consultation services, information technology, medical services and legal services.