A professional is someone who earns a living from a specified profession. For example, Lawyers, Doctors, Engineers, Architects and many others. The decisions these professionals make can have a severe consequence to clients if their calculations/decisions are not sound; even if they have not been negligent. These mistakes can cost millions and thousands and can result in legal repercussions. As such, Liability Insurance should be on the top of professionals’ minds before they operate. A Professional Indemnity policy helps to protect your company’s operation and balance sheet from any legal lawsuits or fines that may be subjected to you.

What is a Professional Indemnity Insurance?

Professional Indemnity insurance aims to protect professionals against claims made by clients or third parties resulting from their loss. Usually in terms of monetary or through the disability through health conditions. This insurance covers the insured party’s breach of negligence while providing service.

As a result, it covers defence costs, settlement and damages which the insured party is legally liable for. The list that the insurance covers includes the following but is not limited to:

  • Confidentially breach
  • Loss of sensitive data or document
  • continual cover
  • run-off cover
  • Court attendance cost
  • Civil liability
  • Defamation
  • Intellectual property breach
  • Joint ventures
  • subcontractors & agent

Who Needs it?

professional companies such as architects, doctors, lawyers, surveyors, engineers, teaching organisations, management firms, and travel agencies are amongst those that require Professional Indemnity Insurance. In generally, as long as your company is providing the following services, it is important to cover yourselves in case of any mistakes made.

  1. Provide Advice to Clients that are legally binding
  2. Professional services such as engineering work, architectural work
  3. Legislative requirements
  4. Contractual agreements
  5. Handle confidential data

How to determine cost?

The cost of a indemnity insurance is dependent on several factors which includes the type of services they render. Large engineering corporations tend to have a higher cost due to the scale of work they are operating on. A small mistake due to wrong measurements might cost millions at a time while a General practitioner might cost lower due to their scope of work. As such, the cost of coverage is determined by the following factors.

  1. Type of service they provide and the scale of work
  2. Annual revenue
    1. Location of revenue (Revenue from overseas might have higher costs due to the different legal requirements/repercussions)
  3. Annual coverage or project based coverage


A professional indemnity insurance is a necessity especially in Singapore. Mistakes can inadvertently happen and even seasoned professionals can make mistakes. Even if you have not made a mistake, you can still be sued and PI policies can help protect your business and also offer a blanket of protection from costly legal suits.

If you would like to cover yourself or your business, please contact us directly. We offer a no obligation quotation and we strive to offer the best prices and simple proposal forms that can be easily processed.