Janardhan NWhat if your professional indemnity insurance doesn’t step in when you need it most?
That’s a hard lesson many professionals learn only after a claim hits. Policies are filled with fine print, and it’s easy to think you’re covered for everything when you’re not.
More and more professionals now recognise the need for PI insurance. Yet negligence remains the leading cause of claims, accounting for over 45% of notifications to Marsh India between 2022 and 2023.
Behind those figures are consultants, architects, and advisors who have discovered, too late, that one mistake, miscommunication, or overlooked detail could trigger serious financial losses.
A client overseas can file a lawsuit. A project from ten years ago can resurface. A single piece of advice can snowball into a million-dollar case. These aren’t rare events—they happen every day.
The real problem is that many believe their policies have them covered when actually the coverage does not match the risks they face.
This guide will break down the inclusions and exclusions of PI insurance coverage, giving you the clarity to choose protection that genuinely safeguards your business, your finances, and your reputation.
Mitigata – Leading Professional Indemnity Insurance Provider
Choosing the right professional liability insurance coverage is not just about finding a policy. It’s about finding the right partner who understands your risks and stands by you when things go wrong.
That’s where Mitigata is the partner you need.
Trusted by over 800 businesses across 25 industries, Mitigata has established itself as India’s leading full-stack cyber resilience company. We work closely with top insurers like HDFC ERGO, ICICI Lombard, and Bajaj Allianz, giving you access to the most relevant policies without the hassle of endless comparisons.
Businesses stick with us because we keep things simple. We don’t cut corners, and we don’t overpromise. Our 100% retention rate shows that once professionals choose us, they don’t leave.
What our clients tell us:
“They explained everything in easy terms, not insurance jargon.”
“When our claim came up, they handled it like it was their own business.”
“Found an insurance partner that doesn’t disappear after the sale.”
Why do 800+ businesses choose us?
- Competitive rates with comprehensive coverage that actually protects your business without hidden gaps.
- We connect you with insurers who understand your specific industry risks, not generic solutions.
- From quotes to final paperwork, we handle everything while you focus on your business.
- When trouble strikes, we jump in immediately to cut through red tape and delays.
- Professional crises don’t follow office hours – neither do we.
Get ₹5CR of Professional Indemnity at ₹75,000/Year*
Professional indemnity cover at ₹75,000 per year saves you money while keeping your practice safe.
What is PI Insurance Coverage?
Assume you’re a doctor, and despite your best efforts, a patient claims that your treatment worsened their condition. Or you’re a financial counsellor, and a client claims that your investment advice cost them money.
Even if you have done everything correctly, they may still sue you.
In these cases, PI coverage serves as a professional bodyguard. It serves to protect you in situations when a client claims that something in your professional practice caused them to lose money. In short, it covers legal bills and settlements resulting from claims of mistakes, negligence, or other professional blunders.
Here’s how it works in real life: Assume you are an architect who designs buildings. Two years later, the client finds a structural flaw and blames your design. They demand you pay for repairs costing ₹50 lakhs, plus their legal fees.
Without PI insurance, this money comes straight out of your pocket – potentially bankrupting your business.
Want to understand how professional indemnity insurance premiums work?
Check out our expertly curated guide on it.
What does PI Insurance Cover?
Professional indemnity insurance doesn’t cover everything, but it does protect you from the most common risks professionals face:
Negligence claims
If a client believes your work fell below expected standards, they may sue for losses. For example, an engineer who miscalculates a structure’s load capacity could be held responsible if the project fails. PI insurance covers these kinds of negligence claims.
Error and omission
Sometimes mistakes happen, and services fail to fulfil the expected standards. A financial advisor may overlook any risk element in an investment plan, which can result in customer losses. Such cases are covered by PI insurance.
Legal defence costs
Lawsuits are costly, even if you are not at fault. PI insurance pays for legal expenses such as lawyer fees, court costs, and settlements. It also means that you can dispute claims without draining your money.
Claims of Misrepresentation
If a client believes you gave misleading or inaccurate information, they can submit a claim. For example, a consultant may accidentally overestimate the impact of a strategy. Then, PI insurance can help cover the costs of defending against such allegations.
Breach of contract
When you fail to meet contractual obligations, clients may seek damages. For example, a software developer who misses a critical delivery deadline could face a claim. In such cases, PI insurance helps protect against these breaches.
₹5 Crore PI Insurance Cover Starting at ₹75,000/yr*
With Mitigata, you’re never alone — our 24/7 assistance helps resolve claims and concerns without waiting.
What’s Not Covered by PI Insurance
PI insurance has clear limits. Here are some situations where coverage does not apply:
Intentional misconduct
If you knowingly act dishonestly or engage in fraud, PI insurance won’t protect you. For example, if a professional deliberately falsifies a report, any claim that follows will not be covered.
Bodily injury and property damage
PI insurance deals with financial and professional risks, not physical ones. If someone slips and falls in your office or if equipment damages a client’s property, those claims fall under Commercial General Liability (CGL) insurance, not PI.
Prior known claims
PI insurance is not retroactive. If you were aware of a potential claim before the policy started, it won’t be covered. For example, if a client had already raised concerns about your work, and you later buy PI insurance, the insurer will not cover that case.
Also Read
If you’re looking for a comparison guide, do check out this expertly curated list of top PI companies in India.
How to Choose the Right PI Coverage
Finding the right professional indemnity insurance coverage doesn’t have to be complicated. Here’s a simple way to approach it:
- Assess your risks: Consider the type of work you do and the associated risks. An architect and an IT consultant won’t need the same coverage.
- Look at claim limits: Higher coverage means more protection, but balance it with what you can afford.
- Check exclusions: Know what’s not covered so you’re not surprised later.
- Compare insurers: Each insurer has its own unique strengths. Some are better suited for consultants, while others are ideal for financial services.
Work with Mitigata and let us simplify it all. From identifying your risks to handling quotes and paperwork, we make sure you get the right coverage at the right price.
800+ Businesses Trust Mitigata For Protection That Never Misses The Mark
Get robust professional indemnity insurance coverage powered by top insurers and proven expertise that delivers value and security every day.
Conclusion
Buying PI insurance without fully understanding your coverage is like wearing a seatbelt that may not be securely buckled. Understand what is and is not covered, and select a professional liability insurance coverage that fits your specific risks. Without this knowledge, you may assume you are protected, while in fact you are not.
Still have questions about PI insurance coverage?
Save yourself 20 minutes and book a call with us. No spam, no pushy sales calls – just clear answers to your specific concerns.
Get the benefit of our trusted insurer partnerships, transparent pricing, and round-the-clock support for truly comprehensive coverage.
Talk to Mitigata today and work with confidence, knowing you’re properly protected.
