Professional Indemnity

Professional Indemnity or Professional Liability or Error And Omission Insurance is insurance that provides legal liability cover to professional service companies for negligence, errors, violations in carrying out their duties and obligations in their profession.
As a professional, the Insured must be responsible for errors, omissions or breaches of professional duties (breach of professional duty) which can result in very large financial losses. The legal awareness of the community is increasing, so that the injured party tends to use their rights to sue in court. No matter how experienced the insured is or how long the company has been in existence, errors can still occur during the operational process. A lawsuit can damage the insured’s business financially because the court process is very expensive, time consuming and involves many parties. Even the insured can still end up in litigation even though he has not done anything wrong. Therefore, this is where the function of Professional Indemnity Insurance can provide protection when facing these demands


This insurance will pay:

  1. Any legal responsibility to pay compensation
  2. Any fees and charges determined by you to be paid, arising from any legal liability arising from claims for violations of professional duties in the conduct of your business
  3. Costs and burdens of resistance to lawsuits

Scope of coverage:

  1. Privacy breach
  2. Contract law responsibilities
  3. Defamation
  4. Infringement of Intellectual Property Rights
  5. Joint venture legal responsibilities
  6. Loss of documents
  7. Trade practices and related laws and regulations
  8. Substitute legal liability (vicarious liability)


In general, this policy does not pay for:

  1. Dishonest or intentional acts (criminal)
  2. Cases of claims outside the geographical and jurisdictional boundaries of the policy summary
  3. Risk of lawsuits covered by separate policies (Directors & Officers Liability, Employers Liability, Product Liability, Pollution Liability, etc.)
  4. General exclusions found in all business insurance policies (radioactive contamination, bankruptcy, terrorism, war, asbestos, trade and economic sanctions)

Minimum Data Requirement

  1. Company/ insured’s details
  2. Name of the insured’s clients
  3. Detail contracts received for last financial year; current financial year and estimate next year
  4. Loss history

Claim Procedures

  1. Notification of claims must be accompanied by reasons for anticipating an insurance claim will occur, and fully relevant information with respect to the date, details of the action of wrongdoing (if applicable) and potentially related parties as the insured and the insurer.
  2. The Insured is not permitted to acknowledge or indemnify, enter into a settlement agreement, or approve a decision, without the prior written consent of the Insurer (which will not be unreasonably delayed or withheld). The insured must contact the insurer first, immediately after an event that has the potential to cause a loss occurs

Supporting documents:

  1. Claim letter
  2. Detail chronology of event
  3. Claim letter or any written information of any potential sue/claim from third party against the Insured in respect of any professional act covered under the Policy.
  4. Other supporting document