Professional Indemnity Insurance
Professional Liability Insurance (PLI) or Professional Indemnity Insurance (PII), also known as Errors and Omissions (E&O Insurance), is a special type of coverage that protects an individual professional or a company against claims that a professional service they provided caused their client to suffer financial harm due to mistakes on their part or because they failed to perform some service.
PLI can cover the cost of defending yourself or your company in a civil lawsuit and certain damages awarded, even if the legal action turns out to be groundless. Professional liability insurance is required by law in some areas for certain kinds of professional practices. This type of protection is not part of the general liability insurance.
Common claims that professional liability insurance covers are negligence, misrepresentation, violation of good faith and fair dealing, and inaccurate advice.