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Professional Indemnity Insurance

Your advice costs a client money and they sue. PI covers the lawsuit, legal fees, and settlement — so one mistake doesn't sink your firm.

What Is Professional Indemnity Insurance?

You deliver a software update that crashes your client's production system for three days. An architectural drawing has an error that costs $200,000 to fix on site. A financial advisor's recommendation leads to an unexpected loss. The client comes after you for damages.

Professional indemnity insurance covers exactly this — claims that your advice, services, or work caused a client a financial loss. It pays for the legal defence, the settlement or judgment, and the expert witnesses along the way. Even if the claim is completely unfounded, defending yourself costs money. PI handles the bill.

The stakes are high. Legal defence alone can run into six figures. Settlements for professional negligence regularly reach hundreds of thousands. Without PI, those costs come directly out of your business — and one bad claim can be enough to shut you down.

Coverage

What's Covered

Key areas of protection included under a typical Professional Indemnity Insurance policy.

Negligent acts, errors, or omissions

You make a mistake, miss a deadline, or deliver substandard work — this covers the client's claim against you

Breach of professional duty

A client says you didn't exercise reasonable care in your work — covered, even if you disagree

Defamation

Something you said or wrote in a professional capacity leads to a libel or slander claim

Loss of documents

Client documents get lost, damaged, or destroyed while in your care — covered for restoration costs

Intellectual property infringement

You accidentally use someone's copyrighted material or infringe a trademark in your work

Legal defence costs

Solicitor fees, expert witnesses, court costs, and settlements — even if the claim has no merit

Regulatory defence

The cost of defending yourself before professional bodies or regulators

Who Needs This

Who Needs Professional Indemnity Insurance?

IT and technology companies. Software bugs, system integration failures, data migration errors, missed deadlines — the digital world creates constant exposure to client claims. If you build, advise on, or manage technology for clients, PI is essential.

Consultancies and advisory firms. Management consultants, HR advisors, financial planners, and marketing strategists all provide advice that clients use to make business decisions. If that advice leads to losses, clients sue. It happens more than you'd think.

Architects, engineers, and design professionals. In Singapore, registered architects and professional engineers are legally required to carry PI. Beyond compliance, design errors on construction projects can result in massive rectification costs that will be traced back to you.

Accountants, lawyers, and regulated professionals. If your professional body mandates PI — carry it. If it doesn't but your clients expect it — carry it anyway. The nature of these professions means you're constantly exposed to claims of negligence, error, or breach of duty.

Related Industries

Construction & EngineeringProfessional ServicesTechnology & Startups

Why TRS

Why Get Professional Indemnity Through TRS?

We know the fine print. PI policies vary hugely in what they actually cover, their exclusions, and their sub-limits. We know which insurers offer the strongest wordings for your profession and make sure you're not caught out by gaps that only matter at claim time.

Tender-ready, contract-ready. Many tenders and client contracts specify minimum PI limits and require specific wordings. We help you meet those requirements fast so you can win the work.

Retroactive and run-off cover. We make sure your policy covers past work with the right retroactive date, and we advise on run-off cover if you're winding down or restructuring — so old claims don't catch you off guard.

FAQ

Frequently Asked Questions About Professional Indemnity Insurance

Anyone who gives advice, designs things, or provides professional services for a living. That includes IT consultancies, architects, engineers, accountants, lawyers, financial advisors, recruitment agencies, and marketing firms. If a client could claim your work cost them money, you need PI.
It is for certain regulated professions — architects, engineers, and financial advisors must carry PI as a licensing condition. For everyone else, it's not legally required but it's often a contractual requirement. Government agencies and large corporates won't engage you without proof of PI.
Depends on your contract sizes and client requirements. Most SME service firms carry $250,000–$2,000,000. Businesses handling large projects or regulated work may need $5,000,000+. Your TRS advisor can help you figure out the right level.
Yes — PI policies are 'claims-made', meaning they cover claims made during the policy period even if the work was done years ago. The key is maintaining continuous coverage so there are no gaps. If you cancel and a claim comes in later, you're not covered.
PI covers financial losses from your professional advice or services (your software bug crashes a client's system). PL covers physical injury or property damage from your operations (someone trips in your office). Different risks, separate policies. Many businesses need both.

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