Professional Liability Indemnity

Professional Indemnity insurance (PII) is also commonly known as Professional Liability Insurance (PLI) or known in the United States as “Errors & Omissions (E&O).

What does professional liability indemnity insurance cover?

PII or PLI covers legal costs and expenses incurred in your legal defence as well as legal compensations and costs that are awarded to the other party, if you are sued for causing damages losses to your clients while using your services.

An example would be a cosmetic surgeon working on botox anti-aging treatment for his patients. Due to missing out on the patient’s diet or current medication, the botox reacts badly to her skin, and she sues for damages to her beauty. She can also claim income losses due to her career heavily dependable on her good looks and figures. Professional indemnity insurance would have helped in this case.

Do I need professional indemnity insurance?

If you are a professional, your association or governing body may have a compulsory guideline to purchase basic professional indemnity insurance from their appointed insurer or by your own choice. You can also choose to purchase more professional liability insurance beyond the basic requirement to protect yourself.

Some common examples of professionals that need professional indemnity insurance are

  • doctors, dentists,
  • lawyers,
  • contractors,
  • designers, architects,
  • business consultants, management advisory
  • technicians and engineers
  • IT professionals
  • coaches, tutors, teachers, gurus
  • dance, sports, gym, fitness instructors

You will probably need professional indemnity insurance if you

  1. provide medical treatment and advice
  2.  handle legal advice and work
  3. provide beauty, skincare solution and treatments
  4. give professional services and advice, such as for consulting
  5. work on designing (architect, graphic design, product design)
  6. are involved in engineering works
  7. want to be protected against allegations of mistakes and negligence at work.
  8. work as a freelance consultant, contractors, self-employed professional and will like to use this insurance for your clients for quality assurance for the contract.

How much does professional liabililty insurance would cost me in Singapore?

Thankfully, the premiums and cost in Singapore are low because most insurers, lawyers and defendants work to keep cases off the court to reduce unnecessary costs. You can be sure this useful protection is reasonably cheap.

You can provide a simple estimate of your revenue and your work scope and we will can provide a customized plan that is cheap and designed for you. Or you can also choose to buy a standardized plan of PII if your work or business fits a common model of the insurers.