Professional Indemnity (P.I / E&O): Protect your work and your client relationships
When you provide professional services, an error or omission can cause financial losses to your client, strain the commercial relationship, or even lead to a legal claim.
That’s what P.I (Professional Indemnity / E&O) insurance is for: a policy designed to defend you and compensate third parties for damages arising from your professional activity — including defense costs and, depending on conditions, certain purely financial losses.
What is P.I and what problems does it solve?
Professional Indemnity covers third-party claims for professional negligence (errors, omissions, incorrect advice, technical breaches), as well as the defense costs arising from those claims.
It mainly addresses three challenges:
- Preserve the client relationship: you respond with an insurance policy, not from your own pocket.
- Protect your profit and loss account: you avoid a dispute that could have a disproportionate impact.
- Provide contractual assurance: many proposals or mandates require P.I with minimum limits and specific conditions.
In our case, we often review client proposals and contracts before signing to align what you commit to with what your policy actually covers.
Key coverages of a P.I policy
- Professional negligence, error, or omission
- Incorrect advice, flawed reports, defective deliverables, or breach of technical specifications.
- Third-party financial loss as a direct consequence of the professional act (depending on wording).
- Defense and claims management costs
- Legal fees, expert reports, and court costs.
- Defense inside or outside the limit (we negotiate this—it greatly impacts real protection).
- Intellectual property infringement, defamation, and loss of documents
- IP: unauthorized use of content, methodologies, or software (depending on limits).
- Defamation: professional publications or communications causing harm.
- Loss/damage of documents (including data) related to professional service, with nuances if overlapping with Cyber.
In real claims we’ve handled, documentary proof of the “professional services” scope has been decisive. That’s why we insist on defining it precisely in the policy.
Who is it for? (Private equity, funds, law firms, consulting/IT, engineering)
- Private equity and funds: investment memos/reports, errors in due diligence, modeling, or portfolio monitoring.
- Law firms: deadlines, omissions in filings, undetected conflicts of interest, controversial interpretations.
- Consulting and IT: poorly defined functional scope, defective deliverables, or delays causing client financial loss.
- Engineering/architecture: calculation or design errors (with nuances versus General and Decennial Liability).
We’ve seen claims arising from ambiguous service scopes in proposals. Our recommendation: align contract ↔ policy before signing.
How we work at Jhasa
- We review mandates and SOWs to ensure commercial obligations do not exceed what the policy can absorb.
- We negotiate defense outside the limit, retroactivity, service definitions, and critical exclusions (e.g., contractual liability).
In-house legal team and claims management
- We have a legal team to argue coverage and respond to reservation of rights.
- In a claim, we assist from early notification (crucial in claims-made policies) through closure, carefully managing language with the insurer to avoid limiting coverage.
In our work with funds and law firms, this technical-legal combination has allowed us to improve terms and resolve claims with a focus on business continuity.
Frequently asked questions about P.I / E&O
Yes — they cover different risks. P.I is what responds to professional service errors.
We safeguard retroactivity and notification clauses to ensure no gaps between policies.
P.I is not an “extra” — it’s part of the business model for any service firm. If you want to safeguard your projects and maintain strong client relationships, we design a policy aligned with how you work and guide you through the fine print when it matters most.
At JHASA, we provide bespoke Professional Indemnity (P.I / E&O) insurance solutions for professionals and firms across all industries, protecting you from claims arising from errors, omissions, or negligent advice in the course of your services — covering defence costs, financial loss to third parties, and reputational damage — so you maintain client trust, business continuity, and robust contractual protection.
Contact us today and discover how we can help you safeguard your professional practice, align your coverage with your contractual obligations, and ensure peace of mind with customised P.I / E&O programmes.