PI insurance, indemnity 中文, professional liability cover

Countless liability risks can negatively ruin careers and companies. Professional liability must always be protected with insurance, specifically professional indemnity insurance (PI insurance).

Clients and customers expect a certain level of service from professionals, and when not provided, clients can take legal action for their damage. No matter how careful a professional is or how experienced they are at their specific service – any expert can be faced with a professional liability claim.

Anyone who provides services to customers and clients needs PI insurance. The lawsuits could be due to negligence, inaccurate advice or even accidental misrepresentation. Certain professions are more likely to face liability risks and lawsuits. Hence the article will highlight the leading careers/professionals that must have professional indemnity insurance

What Is Professional Indemnity (PI) Insurance?

Professional indemnity (PI) insurance is also known as professional liability or error & omission insurance. PI insurance provides coverage for professionals and businesses to protect against claims resulting from the service they have provided.

The insurance will cover legal, compensation and settlement costs when sued by a client/customer. The insurance will cover claims due to negligence, misrepresentation, inaccurate advice, and more.

Each professional providing a service has its particular risks and can be a victim of any liability claims. The insurance may not be legally mandatory, but it is almost necessary to protect professionals and businesses from financial and reputation loss.

Top Professions That Need PI Insurance


Architects are a vital profession worldwide. Architecture experts design structures in the most effective, safe and aesthetically appealing way. They typically work with clients to understand project details and the essential requirements of the structure. The structures include buildings, bridges, stadiums and much more.

architecture, Hong Kong institute of architects, architecture lawsuits

Designing big projects for clients or the government comes with various liability risks. An architect or architecture firm will be liable if their design leads to construction errors, resulting in delays and financial loss for the client.

For example, the famous Palacio de Exposiciones building design error designed by Santiago Calatrava. A part of the building in Spain collapsed while in construction which drastically delayed construction. The property development company sued the architect for 2.9 million euros to cover the delay and loss. 

Architects and architecture firms must purchase PI insurance to cover these risks. The insurance will cover costs related to the case. The insurance is perfect for freelancers and businesses to cover architects’ negligence. Professional indemnity insurance can help architects recover from unpredictable claims.


Accountants provide businesses and individuals with financial advice, which includes financial decisions, investment tracking and cashflow correcting. They are in charge of bank statements, investment portfolios and audits. Being responsible of funds always comes with liability risks and possible claims.

accountant liability, professional indemnity insurance

Clients take accounting negligence very seriously, and the profession can face legal charges for errors. Accountants are always at risk of claims due to the high responsibility and impact of even a small mistake.

For example, an NBA star sued his accountant as he categorised a personal chef as a business expense deduction. The accountant’s negligence got the NBA star into trouble with the IRS, and has to pay fines to fix the problem.

PI insurance will cover accountants and the legal defence of their negligence case. It is one of the most important insurances for all accountants and accounting firms in every industry. Errors are common in the finance industry, and insurance is crucial to handling claims resulting from these errors.


Lawyers are professionals who provide legal advice and represent clients in civil or criminal cases. Providing legal services comes with liability risks that can lead to lawsuits. Even the most experienced lawyers can make mistakes.

law society of Hong Kong, professional indemnity Hong Kong, lawyer liability

Clients can sue their lawyers if they feel their legal advice caused them financial damage or was not what was guaranteed. Lawyer negligence can include mistakes such as losing important documents, inaccurate advice, failure of communication or breach of confidentiality,

For example, a client may sue their lawyer if they believe their attorney fails to act with the appropriate urgency and their delays make them lose the case. The lawyer or law firm will have to pay for the financial loss they suffered and additional compensation costs.

Lawyers and law firms are always at high risk of being victims of liability lawsuits. Therefore lawyers must invest in professional indemnity insurance. PI insurance can help lawyers financially and with their reputation. The insurance can advantage individual lawyers and law firms.


Consultants are a wide range of professionals, including IT consultants, business development consultants and insurance agents/brokers. They are experts in their industry and advise or assist clients with decisions. They are always at risk that their advice may lead to errors and clients’ financial loss.

consultants, liability insurance, business liability coverage

Clients trust these experts and will follow most advice provided due to the immense knowledge they claim to have. However, there have been many incidents where consultants have made errors, resulting in severe loss and angry clients.

For example, an IT consulting firm was sued for poor software development, resulting in a data breach. The client hired the consulting business to create a web-based portal, but the IT company forgot to put any cyber security in the project. The consulting company had to pay a USD 4.95 million settlement to compensate for data loss.

Every consultant needs PI insurance, no matter the industry. The liability insurance coverage can protect business liability in the industry and help defend their case. Most errors made by consultants are typically very common in the industry.


Marketing professionals are among the other professionals that have high liability risks. Marketing experts and agencies work with clients or businesses to create promotional material, manage social media accounts and increase brand reputation. There are always chances of errors and negligence when providing such services, especially when dealing with many clients.

Marketing Agency - professional indemnity policy cover

Clients expect a particular output when they hire marketing professionals. Clients can take action if they feel the service caused them some loss. Failure to deliver is a common marketing negligence in the industry, and clients feel cheated.

For example, a client sued a marketing agency due to a faulty QR code. The agency was hired to create online and offline promotion posters to attract customers. The client spent a large amount; however, the QR code that was directed to the product and website failed to work post-launch.

Customers were led to nothing, most of the budget was wasted, and additional funds were spent to fix the marketing mistake

There are various risks that can lead to liability lawsuits; hence marketing professions and agencies need PI insurance. The insurance will allow them to provide the best service without worrying about claims. Sometimes how hard marketers try, promotion efforts do not plan out as promised.

How Does PI Insurance Help Freelancers and Businesses?

Professional indemnity insurance is a vital insurance for all these professions and more. Additional jobs that need the insurance are personal trainers, engineers, constructors and many more. However, each profession needs to recognise its liability risk and have measures that help lower the chance of them.

If a professional provides a service, they need PI insurance beforehand. The insurance is perfect for freelancers and businesses. The insurance will benefit the policyholder in many ways when faced with an unfortunate lawsuit.

One of the benefits is financial protection; most costs will be covered, meaning the professional will not need to suffer a huge financial loss. Additionally, the insurance provides the peace of mind to focus on the job rather than liability risks.

Lawsuits come without warning, and having PI insurance beforehand provides the ideal protection for a better future.


To Learn More about professional indemnity insurance and get the best protection for professionals in Hong Kong & Asia, contact Red Asia Insurance.