What is the meaning of professional indemnity insurance

Professional indemnity insurance is a type of insurance policy designed to protect businesses if their customers claim that their products or services are inadequate.In legal terms, indemnity is a contractual clause that protects one party from being liable to pay for the losses sustained by a third party.It covers businesses and individuals against compensation claims made by clients for alleged negligence or inadequate services.If someone alleges that you've made a mistake, overlooked a critical piece of information, misstated a fact or they have misinterpreted you in the course of your work resulting in a financial loss for your client, they may take.In principle, these terms mean the same thing, and cover you for professional negligence and mistakes.It covers any cost of having to compensate clients for loss or damage caused by unsatisfactory products or services.

If a mistake or omission occurs in the course of.What is professional indemnity insurance.Professional indemnity insurance is a legal backing that protects you from incurring an expensive loss when your client decides to sue you in court for a lack of satisfaction with goods or services provided.You might also hear it referred to as indemnity cover, or errors and omissions insurance (e&o insurance).In insurance, indemnity insurance is the financial protection given to a business or professional from the financial losses incurred due to professional negligence, errors & omissions, or malpractice.