What is Professional Indemnity (E&O)?
Professional Indemnity (also called Errors & Omissions) insurance covers legal costs and damages awarded against a professional for alleged negligence, errors, or omissions in their professional services.
Who needs it?
- Doctors (especially surgeons, OB-GYN, anaesthesiologists)
- Chartered Accountants & auditors
- Architects & engineers
- IT services / development firms
- Marketing & PR agencies
Why it matters
Legal defence costs covered from day one
Settlement amounts covered up to policy limit
Retroactive cover for past work
Required for many B2B contracts
Common myths, busted
Myth: I've never made a mistake.
Truth: PI covers alleged errors — a frivolous lawsuit still costs lakhs to defend.
Real claim examples
- ₹40 L legal costs covered for a CA firm sued by a former client over audit interpretation.