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Professional Indemnity Insurance

Protection against claims that your advice, service, or work caused a client financial loss.

What Is Professional Indemnity Insurance?

Professional indemnity (PI) insurance — sometimes called errors and omissions (E&O) insurance — protects your business when a client claims that your professional advice, services, or work caused them a financial loss. It covers the cost of defending the claim and any compensation or settlement you're required to pay.

Even the most diligent professionals make mistakes. A software developer delivers code with a critical bug that takes a client's systems offline. An architect's design specification contains an error that leads to costly rework. A financial advisor's recommendation results in an unexpected loss. These aren't hypothetical — they're the kinds of claims that PI insurance is built to handle.

What makes PI particularly important is that claims can be extremely expensive. Legal defence alone can run into six figures, and settlements for professional negligence can reach millions. Without PI cover, those costs come directly out of your business.

Coverage

What's Covered

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

Negligent acts, errors, or omissions

Claims arising from mistakes, oversights, or failure to deliver services to the expected standard

Breach of professional duty

Failure to exercise reasonable skill and care in performing professional services

Defamation

Claims of libel or slander arising from statements made in a professional capacity

Loss of documents

Costs of restoring or replacing client documents lost, damaged, or destroyed while in your care

Intellectual property infringement

Unintentional infringement of copyright, trademark, or other IP rights in the course of your work

Legal defence costs

Solicitor fees, expert witnesses, court costs, and settlement negotiations — even if the claim is groundless

Regulatory defence

Costs of defending yourself before professional bodies or regulatory authorities

Who Needs This

Who Needs Professional Indemnity Insurance?

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

Consultancies and advisory firms. Management consultants, HR advisors, financial planners, and marketing strategists all provide advice that clients rely on to make business decisions. If that advice leads to losses, clients can — and do — sue.

Architects, engineers, and design professionals. In Singapore, registered architects and professional engineers are required by their professional bodies to maintain PI coverage. Design errors on construction projects can result in massive rectification costs.

Accountants, lawyers, and regulated professionals. Professional regulatory bodies in Singapore often mandate PI coverage as a condition of licensing. Beyond compliance, the nature of these professions — handling client finances, legal matters, and sensitive decisions — creates significant liability exposure.

Related Industries

Construction & EngineeringProfessional ServicesTechnology & Startups

Why TRS

Why Get Professional Indemnity Through TRS?

Specialist placement. PI policies vary significantly in their terms, exclusions, and sub-limits. We know which insurers offer the strongest wordings for your specific profession and ensure you're not caught out by hidden gaps.

Contractual compliance. Many tenders and client contracts specify minimum PI coverage amounts and require specific policy wordings. We help you meet those requirements efficiently so you can win the work.

Retroactive cover. We ensure your policy includes appropriate retroactive dates to cover past work, and we advise on run-off cover if you're winding down or changing your business structure.

FAQ

Frequently Asked Questions About Professional Indemnity Insurance

Any business that provides advice, designs, plans, or professional services — including IT consultancies, architects, engineers, accountants, lawyers, financial advisors, recruitment agencies, marketing agencies, and management consultants. If a client could claim that your work or advice caused them a financial loss, you need PI cover.
It's mandatory for certain regulated professions — for example, architects, engineers, and financial advisors must carry PI cover as a licensing condition. For other professions, it's not legally required but is often a contractual requirement. Many clients, especially government agencies and large corporates, will not engage a service provider without proof of PI coverage.
Coverage limits depend on your industry, the size of your contracts, and client requirements. Most SME service firms carry between $250,000 and $2,000,000. For businesses handling large projects or regulated activities, $5,000,000+ may be appropriate. Your TRS advisor can help you determine the right level.
PI policies are typically written on a 'claims-made' basis, meaning they cover claims made during the policy period — including claims arising from past work, as long as you weren't aware of the potential claim when you took out the policy. Maintaining continuous coverage is important to avoid gaps.
PI covers financial losses caused by your professional services (e.g., bad advice, design errors, missed deadlines). Public liability covers physical injury or property damage caused by your operations (e.g., a client trips in your office). They protect against different types of risk, and many businesses need both.

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