Janardhan NWhich insurance should you pick – one that protects your company’s leaders or one that covers your professional services? It’s a confusion many businesses face today.
As per statistics, the global Professional Indemnity insurance market in 2024 was worth about USD 45 billion.
At the same time, the Directors & Officers insurance sector hit roughly USD 27.70 billion.
These numbers show just how many businesses want to guard against risks.
Today, if you run a business, you know better what kinds of risks you face every day. And that’s why protecting just your company isn’t enough anymore. You also need coverage that protects you as an individual.
Let’s take an example of a company’s director who faces a lawsuit over decisions made during a challenging project. Now, without the right insurance, his personal risk is quite huge.
Without further delay, let’s understand the main differences between Professional Indemnity and Directors & Officers insurance.
What is Directors & Officers (D&O) Insurance?
As the name suggests, D&O insurance provides protection for the people who run your company – the directors and officers. This insurance covers situations where they could be sued for certain business decisions or actions. It provides assistance with legal costs, including lawyers’ fees, settlements, and other related expenses.
Directors & Officers (D&O) Insurance Starts at Just ₹10,000/Yr*
Partnered with top-tier providers and trusted by 500+ businesses to deliver personalized D&O insurance at the best market rates.
What is Covered by Directors & Officers Insurance?
- Legal expenses and damages: Pays for legal fees and any damages if directors or officers face lawsuits.
- Management decisions and wrongful acts: Covers claims linked to decisions made by company leaders or alleged wrongful acts.
- Employment issues: Covers claims of wrongful termination or discrimination.
- Securities litigation: It addresses lawsuits related to securities violations for publicly listed companies.
Looking to buy D&O insurance? Find out this year’s leading Directors & Officers insurance companies, which are protecting leaders from today’s biggest business risks.
What is Professional Indemnity (PI) Insurance?
Professional Indemnity (PI) insurance, often called Tech Errors and Omissions (E&O) insurance, protects individuals who provide services or advice. These can be doctors, architects, consultants, and many more. Suppose a client accuses you of making a mistake, missing an important detail, or giving bad advice that caused them to lose money. Here, PI insurance can defend you by covering the costs.
Professional Indemnity (PI) Insurance Starts at Just ₹75,000/Yr*
Our PI insurance plans deliver full coverage, lightning-fast claims, and 24/7 support whenever you need it.
What is Covered by Professional Indemnity Insurance?
- Negligence claims: Includes claims resulting from professional carelessness or failure.
- Errors and omissions: Protects you if you make mistakes in the product or don’t deliver the product on time.
- Legal defense costs: Covers your legal fees.
- Claims of misrepresentation: Covers allegations of giving false or misleading information.
- Breach of contract: Covers claims if you don’t meet your contract obligations.
Do check out our experts’ recommended list of top Professional Indemnity insurance companies of 2025.
Key Differences Between D&O and PI Insurance
Below, we have explained the difference between D&O and PI insurance in a simple tabular format.
| Aspect | Directors & Officers (D&O) Insurance | Professional Indemnity (PI) Insurance |
|---|---|---|
| Who it protects | Company directors and officers | Professionals and service providers |
| What it covers | Lawsuits over management decisions, wrongful acts, employment issues, and securities violations | Claims of negligence, errors, omissions, misrepresentation, and breach of contract |
| Main risks covered | Legal actions linked to leadership and governance | Financial loss due to professional mistakes or advice |
| Typical users | Businesses with boards, executives, and company leaders | Consultants, lawyers, architects, IT service providers |
| Focus of coverage | Protects individuals in leadership roles from personal loss | Protects business against claims related to service delivery |
Which Insurance is Right for Your Business?
Now, to decide between Directors & Officers and Professional Indemnity insurance, you must know your business needs and the high risks that it faces.
If the main worries are about leadership decisions, company governance, or the actions of your directors and officers, D&O insurance is the right call. For example, a startup with a board of directors may need this to protect its executives from lawsuits related to company management.
On the contrary, if your business gives advice, consulting, or professional services, then you should consider Professional Indemnity insurance. For businesses working in the consulting, law, and IT domains, the risks of a small mistake or missed deadlines can have huge negative impacts.
Some businesses actually buy both – D&O and Professional Indemnity Insurance – to cover different risks at the same time. For instance, a growing IT company might have directors facing governance risks, while its consultants face the chance of client claims over service errors. Having both policies means they protect both their leadership and their professional services.
If you’re still confused, then ask yourself these questions.
What kind of risks do you face every day, and who makes the final call in your company? Who interacts with your clients, and in what kind of claims, do you need help with?
Once you have answers for this, you can decide if you need one insurance or both types of coverage.
Conclusion
Not sure whether directors and officers insurance vs professional indemnity insurance fits your needs? Mitigata can help.
As India’s trusted cyber resilience company, we offer a wide range of insurance solutions backed by top industry partners. We simplify your search for the best D&O and PI insurance.
How?
We help you skip the hassle of comparing multiple sales decks or stressing over which policy fits your needs. We cut through the noise and deliver the right insurance protection for your business and professional services at the best-in-market prices.
Get in touch with Mitigata today, and let’s find the right insurance solution for you.
