01 / The meaning
What it means.
The professional title alone does not show whether all work is insured. An IT consultant might advise, write code, manage hosting and resell equipment, with different implications for each activity. Describe deliverables, client reliance, jurisdictions and subcontractor roles. The policy may address compensation and approved defence costs, but it is not a promise to fund every customer dispute or rectify every unsatisfactory job.
Many professional indemnity policies operate on a claims-made basis. The timing of a demand, awareness of a circumstance, notification and the retroactive date therefore require attention. Contractual guarantees, assumed liabilities, intellectual-property allegations and bodily injury can receive different treatment. Retain engagement letters and work records, and consider continuity or run-off when changing insurers, selling or closing the practice.
02 / Put it in context
A practical example.
Hypothetical example: A consultant’s report contains an alleged calculation error that a client says caused a purchasing loss. The consultant preserves the scope and working papers and notifies the demand. Liability, timing and the insured-services definition must be assessed before any outcome is known.
This example illustrates the term. It does not predict a claim outcome.
03 / Read the detail
What to check.
- Match the insured services to every material activity and deliverable.
- Check claims-made timing, retroactive date and notification duties.
- Review contractual promises, defence costs and relevant exclusions.
04 / Start a useful conversation
A question for your broker.
Does this wording address the services our clients actually rely on?
05 / Connect the terms
Keep the meaning in context.
06 / Apply it to your business
Related insurance guides.
Further reading
Read the source guidance alongside the relevant policy wording.
General information only. This does not take into account your objectives, financial situation or needs. Before acting, consider whether the information is appropriate for you. Cover is subject to insurer acceptance and the policy terms, conditions, limits and exclusions. Read the Financial Services Guide and the relevant PDS (where applicable) and/or policy wording before deciding.
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