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What is professional liability insurance
Professional Liability Insurance (or Professional Indemnity Insurance) is a type of insurance cover that is mostly used by business professionals and consultants. This type of insurance provides protection to the professionals against claims made by clients for any error or default in service by them. Professional Liability Insurance (PLI) covers any unforeseen or involuntary loss occurred to the client by the services of any individual and safeguards them from paying huge amounts of money from their own pockets.[ii]The relationship between a professional and his client can be jeopardized by any such event of monetary loss and can easily disrupt the fiduciary bond. Thus, this necessity is particularly afforded by every business organization and individual for the protection against any error or omission that has occurred unwillingly during disposal of their services.
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