Professional indemnity insurance
Professional indemnity insurance provides cover, subject to policy terms, for specified claims arising from professional services. Requirements for cover and minimum amounts depend on the professional body, jurisdiction and type of practice. Insurance does not eliminate the underlying professional duty or make every claim recoverable.
Worked example
An audit firm reviews the scope and limit of its policy when assessing the financial consequences of a negligence claim.
Common mistake
Do not assume a policy covers every breach, loss or legal cost, or that one coverage limit applies everywhere.
Where it appears in your exams
| Qualification | Exam | Relationship | Period |
|---|---|---|---|
| ACCA | AAA (INT) | Supporting | September 2026–June 2027 |