Professional Liability Insurance

Professional Liability Insurance Overview:

Professional Liability Insurance (PLI), is also known as Professional Indemnity Insurance (PII) or as Errors & Omissions (E&O). This is a liability insurance cover that protects individuals from professional risks and related legal expenses. It provides indemnity in case a third-party sustains injury, harm, death or damage to property due to the professional service or advice provided by the insured. Most common cases where professionals have been sued in court are for negligence or malpractice.

In most cases, this insurance policy can be availed by professionals such as lawyers, doctors, architects, Chartered Accountants, etc. and also by professional organizations and bodies such as hospitals, law firms, BPOs and so on. Some of the leading insurance providers who offers Professional Liability Insurance includes New India Assurance, HDFC Ergo, Bajaj Allianz, United India Insurance, ICICI Lombard and National Insurance Company. The scope of the cover varies from insurance provider to insurance provider.

Features and Benefits of Professional Liability Insurance Policy:


This policy covers any legal liability arising out of errors, omissions or negligence of a professional while rendering a service, which causes injury to a third party or damage to third party property.

Group Policies

Group policies are also available for professional indemnity cover. Members of one profession will be covered. A discount of premium is also applicable as per the number of members added under the group policy.

Defense Expenses

Defense expenses are also covered under this policy. All the fees and charges applicable on the defense of the insured in court, is paid out of the sum insured. This is limited to India only.


Generally, under a professional liability insurance policy, only the civil liability claims are covered. If the claim arises out of a criminal act or violation of law, then it is not covered under this policy.


This insurance policy is meant for professionals such as:

Medical establishments, Doctors and other medical practitioners, architects, engineers, interior decorators, advocates, lawyers, counsels, solicitors, financial accountants, Chartered Accountants, management consultants, etc.

List of Top Companies Providing Professional Liability Insurance Plan:

  • New India Insurance – New India Insurance offers Professional Liability Insurance policy to professionals in order to give them financial protection in the event of a legal liability. Only civil liability claims are covered under the same. Legal liability can arise out of error or negligence by the policyholder which results in any harm or death to a third party or third party property damage. The option to avail group policies is available.
  • Reliance General Insurance – The Reliance Professional Indemnity Insurance Policy is popular due to its comprehensive coverage and quick documentation. All legal expenses related to legal issues arising out of services offered by a professional/ professional service provider, is covered. This policy also permits the increase or decrease in the sum insured on a mid-term basis.
  • United India Insurance Company - United India Insurance Company provides Professional Indemnity Insurance Policy to Doctors, Engineers, Architects, CA, Lawyers and also establishments such as hospitals and clinics. The policy period is 12 months.
  • ICICI Lombard – ICICI Lombard offers Professional Indemnity insurance policies specifically for Doctors. It covers any legal case arising due to injury or death of a patient due to the omission, negligence or error of the insured. The premium depends on the limit of indemnity, risk group of the doctor and ratio of limits. The jurisdiction of the policy is limited to India only.

Professional Liability Insurance General Exclusions:

Some of the general exclusions under this policy are as follows:

  • Criminal act, fraud and other violations of law
  • If the insured is under the influence of drugs or alcohol while rendering the service.
  • Any condition which is associated or caused by AIDS
  • Legal liability arising out of personal injuries such as false arrest, slander, wrongful detention, libel, defamation, wrongful eviction, etc.
  • Infringement of copyright, plans, trade name, patent, registered design or trade mark.
  • Willful or deliberate non-compliance of statutory regulations.
  • Financial loss borne by the insured, such as loss of market/ goodwill.
  • War activities and nuclear perils.

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