What Is Professional Indemnity Insurance?

Professional indemnity insurance protects businesses and individuals who provide professional services, advice, or consultancy. It covers the cost of legal defense and compensation if a client claims that your work caused them financial loss due to negligence, errors, or omissions.

Without this coverage, one client dispute could result in legal fees and settlements that might financially devastate your business.

Who Needs Professional Indemnity Insurance?

This type of insurance is essential for anyone offering expert knowledge, advice, or specialized services, including:

• Consultants

• Accountants and auditors

• Engineers and architects

• IT professionals

• Marketing and business advisors

• Freelancers and contractors

If you give advice or provide a service where mistakes could cost your clients money, professional indemnity insurance is a safety net.

What Does Professional Indemnity Insurance Cover?

A typical policy covers:

• Negligence – mistakes or failure to deliver promised services

• Errors or omissions – overlooked details that harm a client

• Breach of professional duty – failure to meet industry standards

• Defamation and libel – if a client claims reputational harm

• Loss of documents or data – accidental damage, loss, or theft

• Legal defense costs – court expenses and lawyer fees

Typical Coverage Limits and Cost

Coverage and price vary depending on the industry, size of business, and risk level.

👉 Toby Hansen Agency searches nearly 100 carriers to find you the lowest price with the most coverage, ensuring you don’t overpay.

Why Choose Toby Hansen Agency?

Unlike direct insurers that only offer their own products, Toby Hansen Agency compares nearly 100 carriers to give you:

• The lowest premiums available for your coverage needs

• Tailored policies that match your industry risks

• Expert support to handle claims and legal disputes

• Peace of mind knowing you’re fully protected

FAQ – Professional Indemnity Insurance

1. Is professional indemnity insurance required by law?
Not always. However, many professional bodies and clients require it before working with you.

2. How much coverage do I need?
It depends on your industry and contract requirements. Some clients demand at least $1 million in coverage.

3. Does general liability insurance cover professional mistakes?
No. General liability covers physical injuries or property damage, while professional indemnity covers financial losses caused by your advice or services.

4. Can freelancers get professional indemnity insurance?
Yes. Even solo consultants or freelancers can (and should) carry coverage.

5. How quickly can I get covered?
With Toby Hansen Agency, you can get covered in minutes after requesting a free quote.

Get Your Free Quote Today

Don’t leave your business exposed. One client dispute could cost you thousands. Toby Hansen Agency makes it easy: we compare nearly 100 carriers and deliver the best price with maximum protection.

👉 Fill out the free insurance quote form below and protect your business today.