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Professional Indemnity Insurance: Cost & Quotes From $11

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Table of contents

1. Professional Indemnity Insurance Definition 1.1. PI Insurance Definition 1.2. What’s Indemnity Insurance? Is It The Same as Professional Indemnity Insurance? 2. How Does Indemnity Insurance Work in Practice? 2.1. What is Indemnity In Insurance? 3. What Indemnity Insurance Coverage Policy Limits Do I Need? 4. Who Needs Professional Indemnity Insurance? 5. 6. When Won’t Professional Indemnity Insurance Apply? 7. Public Liability and Professional Indemnity Insurance: The Difference 8. I’m Just a Small Time Professional Services Specialist, Should I Still Get Indemnity Insurance?  9. What is Medical Indemnity Insurance? 10. Professional Indemnity Insurance Costs 11. 12. Where to Get a Quote for Professional Indemnity Insurance? 13. The Best Professional Indemnity Insurance USA: Let’s Review the Top Companies! 13.1. CoverWallet Professional Indemnity Insurance 13.1.1. Why Get Insured by CoverWallet?13.1.2. Why Take CoverWallet with a Grain of Salt?13.2. 13.3. Thimble Professional Indemnity Insurance 13.3.1. Why Get Insured by Thimble?13.3.2. Why Take Thimble with a Grain of Salt?13.4. 13.5. Next Professional Indemnity Insurance 13.5.1. Why Get Insured by Next?13.5.2. Why Take Next with a Grain of Salt?13.6. 13.7. Hiscox Professional Indemnity Insurance 13.7.1. Why Get Insured by Hiscox?13.7.2. Why Take Hiscox with a Grain of Salt? 13.8. 13.9. The Hartford Professional Indemnity Insurance 13.9.1. 13.9.2. Why Get Insured by The Harford? 13.9.3. Why Take The Hartford with a Grain of Salt?13.10. 13.11. AIG Professional Indemnity Insurance 13.11.1. Why Get Insured by AIG?13.11.2. Why Take AIG with a Grain of Salt?14. Final Thoughts

The professional services sector is one of the most booming sectors in the United States. According to the most recent survey, firms generated a combined revenue of $2 trillion in 2018. In connection, consulting, legal, architectural, engineering, and management consulting services continue to generate the highest income.


In the professional services sector, one can be held responsible for any loss a client experienced so long as such loss can be linked to the service provided. Professional indemnity lawsuits can be very problematic as they can result in million-dollar payments. For example, it’s estimated that all recorded medical indemnity cases amounted to $19 billion in tort costs.


Insurance companies offer professional indemnity insurance for lawyers, accountants, bookkeepers, business consultants , engineers, and other people who make money through their expertise. This guide will answer all of your questions about it. We’ll also discuss other related topics such as what is indemnity cover and public indemnity insurance.

Also read: Excess Liability Insurance Coverage: Quotes from $11

Professional Indemnity Insurance Definition

A professional liability or professional indemnity insurance is a policy that kicks in when a business is held liable for the losses of a client, which resulted from the erroneous delivery of a particular service. 


Image PI Insurance Definition

So what is pi insurance? This is a short term for professional indemnity insurance. The same also goes for pii insurance. Others also like to use the terms  public indemnity or personal indemnity insurance, which might be correct. However, note that in insurance terminology, public indemnity and personal indemnity insurance also are  other policies different from pi insurance. 


Image What’s Indemnity Insurance? Is It The Same as Professional Indemnity Insurance?

So what is a indemnity policy? Business indemnity insurance is another term for professional indemnity insurance. Note that this term is rarely heard of, and insurance agents use the term PI insurance or professional indemnity insurance when asked what is an indemnity policy.  


How Does Indemnity Insurance Work in Practice?

In practice, a professional indemnity policy or indemnity insurance policy applies when the policyholder has the responsibility to compensate the client because of negligence, misrepresentation, violation of good faith, and inaccurate advice.


Business insurance companies usually offer professional indemnity cover together with general liability insurance. General liability insurance only accounts for bodily injury, property damage, and advertising injury. It doesn’t take care of legal claims a client makes because the business committed errors or omissions. And so, insurance for professional indemnity was introduced. 


Image What is Indemnity In Insurance?

Indemnity in insurance is compensation for damage or loss one caused to a client while performing his professional duties


What Indemnity Insurance Coverage Policy Limits Do I Need?

The limits of professional indemnity depend on what kind of professional services a policyholder offers. For example, professional indemnity insurance usually gives higher limits for doctors than for accountants or lawyers.


But still, in practice, the policy limit of professional indemnity insurance starts at $1 million up to $2 million. The policyholder can also get more if they request the indemnity insurance company to increase the policy limit to $5 million or $10 million. But note that if you decide to do this, then the carrier will increase the rates of your quote for professional indemnity insurance. 


If you’re running a startup professional services firm, then it’s a good idea to get $1 million indemnity insurance. However, if your firm is doing large-scale operations, then opt to get $5 million minimum coverage. 


Who Needs Professional Indemnity Insurance?

Those who provide professional services should not think twice about looking for professional indemnity insurance quotes and getting insured. But still, you deserve to know which professions will find this policy absolutely useful. The table below shows who should get a professional indemnity insurance policy and why. 



What Does Indemnity Insurance Cover?
Lawyers Professional indemnity insurance helps with common legal malpractices such as:  

- Failure to obtain client consent
- Failure to file important documents
- Failure to apply or comprehend the law
- Poor client defense/trial
- Inadequate discovery/investigation
- Failure to meet deadlines
Doctors Professional indemnity insurance helps with common medical  malpractices such as:
- Misdiagnosis
- Wrongful prescription of medicine
- Surgical errors (e.g closing a patient with scissors or cotton buds still inside the body)
- Birth injuries
- Incorrect administration of drugs
- Failure to intervene upon seeing that something is wrong
Accountants /Bookkeepers Professional indemnity insurance helps with common accounting/bookkeeping malpractices such as:

- Providing false or erroneous tax advice
- Failure to spot errors on the balance sheet
- Failure to act or report upon seeing that there’s misrepresentation on the accounting records
- Failure to distinguish income and expenses and treating one for the other

Engineers /Architects Professional indemnity insurance helps with common engineering/architectural malpractices such as:

- Assignment of unqualified personnel
- Conflict of interest
- Failure to satisfy the terms and conditions of the contract
- Failure to finish projects on time
- Failure to check compliance with building codes, statutes, and regulations
Freight Forwarder/Broker Professional indemnity insurance helps with common freight forwarder/broker malpractices such as:

- Failure to inspect/inquire about the motor carrier’s capacity to transport a cargo before hiring
- Failure to communicate with the clients
- Failure to deliver the cargo on time
- Failure to ascertain the security of cargo while being transported
Pharmacists  Professional indemnity insurance helps with common pharmacy malpractices such as:

- Miscalculation of medicine dosage
- Failing to identify drug interactions and contraindications


When Won’t Professional Indemnity Insurance Apply?

Professional indemnity insurance won’t cover you if it’s proven you committed intentional negligence, misrepresentation, inaccurate advice, and violation of good faith. Simply put, professional indemnity insurance will only take care of your responsibility to compensate for unintentional acts.

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Public Liability and Professional Indemnity Insurance: The Difference

As we said earlier, some use public indemnity insurance synonymously with professional indemnity insurance. However, the term has much closer meaning to public liability insurance . With that said, how do public indemnity and professional indemnity differ?


Public liability insurance or public indemnity insurance is a policy that will take care of resulting legal claims after a business caused personal injuries or property damage to the community because of business operations. Unlike public indemnity insurance, professional indemnity insurance excludes bodily injuries or property damage resulting from business operations. Its coverage only applies to the responsibility to compensate a client’s loss because of negligence, misrepresentation, violation of good faith, and inaccurate advice.


Though different, public indemnity insurance and professional indemnity insurance go hand-in-hand to provide comprehensive protection to the policyholder.  Public indemnity and professional liability insurance are commonly offered as policies in commercial indemnity insurance.


I’m Just a Small Time Professional Services Specialist, Should I Still Get Indemnity Insurance? 

Understand that indemnity insurance isn’t just for established companies and self-employed professionals. You have to get insured even if you’re just working small time because clients will require you to get professional indemnity cover before signing the contract. Don’t worry about how to get insured because carriers offer small business indemnity insurance that’s cheaper than indemnity insurance for big businesses and offers $1 million minimum coverage. 


What is Medical Indemnity Insurance?

Medical indemnity insurance is a specialized professional indemnity insurance that covers the risks unique to doctors and other medical practitioners. Its limits are much higher than the generalized indemnity cover for all professional services. One of the best indemnity insurance companies that provide this is Marsh. 


Professional Indemnity Insurance Costs

The cost of professional indemnity insurance heavily depends on the type of professional services the policyholder provides. With that said, let’s take a look at the premiums of lawyers, doctors, and other professions we mentioned. 

  • Lawyer’s professional indemnity insurance cost is $18.50 a month or $222 a year for a $1 million coverage

  • Professional indemnity insurance quotes for doctors are expensive. On average, doctors have to pay $333.33 a month or $4,000 a year for a $5 million coverage.  

  • The rates indicated on the professional liability insurance quotes for accountants and bookkeepers is $42 a month or $504 a year for a $1 million coverage

  • Freight brokers/forwarders pay $38 a month or $456 a year for their professional indemnity insurance quote having $1 million coverage

  • Pharmacists’ pay  $78 a month or $936 a year for their professional insurance quote having $1 million coverage

  • Engineers pay $150 a month or $1,800 a year for their professional indemnity insurance offering $1 million coverage


Note that your rates may be a bit different from what’s provided above. This is because the cost of indemnity insurance is determined by many factors aside from the type of professional services you provide. Such other factors that determine indemnity insurance costs are:

  • Your location

  • Prior history of making claims

  • Your policy limits

  • Your deductibles


And so, for further reference, here’s a table of indemnity insurance cost from the most recommended companies according to user reviews, third party reviews, and industry watchdogs like Better Business Bureau. 



Monthly Rate Annual Rate Best for
CoverWallet $28 $336 Professional liability insurance quotes comparison online
Thimble $33 $396 Short-term professional indemnity insurance
Next $42 $504 Buying professional indemnity insurance and other policies all at once
Hiscox $46 $552 Professional indemnity insurance with generous policy limits
The Hartford $50 $600 Professional indemnity insurance provided by a company with a proven expertise
AIG $54 $648 Specialized professional indemnity insurance


Where to Get a Quote for Professional Indemnity Insurance?

On this page is a smart and free tool that will help you get professional indemnity insurance quotes and public liability insurance quotes. To start, find the “Get Quotes” button on this page and fill-up the form. Shortly after doing so, you’ll receive quotes from the best and most accredited indemnity insurance companies in the USA. 

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The Best Professional Indemnity Insurance USA: Let’s Review the Top Companies!

Aside from knowing the average indemnity insurance cost, it will also help if you know which carriers offer the best deals. And so, here’s a review of the top carriers that many recommend for the best indemnity insurance. 


CoverWallet Professional Indemnity Insurance


Why Get Insured by CoverWallet?

  • Has a smart and easy-to-use tool for comparing the professional indemnity insurance of different carriers

  • Has online agents ready to help and provide advice

Why Take CoverWallet with a Grain of Salt?

  • Not an insurance company but a broker offering the policies of its partners to customers


CoverWallet offers the professional indemnity insurance of its partners such as Progressive, Hiscox, and Chubb. What you will like about CoverWallet is that it allows you to get and compare the quotes of carriers having professional indemnity insurance. Go for CoverWallet because aside from the best online quote comparison, it also has the best agents that will help you buy and manage your professional  liability insurance quotes and public indemnity insurance quotes. 


Best for: Professional liability insurance quotes comparison online

Average cost: $28

Our rating: 10/10




Thimble Professional Indemnity Insurance


Why Get Insured by Thimble?

  • Best company for short-term professional indemnity insurance

  • Thimble’s rates are cheaper than other companies that also offer professional indemnity insurance

  • Offers coverage for a variety of professional services

Why Take Thimble with a Grain of Salt?

  • Customer support can’t be contacted through phone calls or emails


Thimble’s professional indemnity insurance will take care of actual or alleged negligence, defense costs, and unwarranted claims of negligence or malpractice against you. There’s no need to wonder if the company can cover you or not because its professional indemnity insurance is available for those who provide professional services in information technology, entertainment, tourism, education, commerce, pet care, and more. Thimble’s professional indemnity insurance is available as a short-term policy, which you can avail by the hour or for events. 


Best for: Short-term professional indemnity insurance

Average cost: $33

Our rating: 10/10




Next Professional Indemnity Insurance


Why Get Insured by Next?

  • Offers discounts if you bundle policies

  • Cancel your policy without fees

Why Take Next with a Grain of Salt?

  • You can only manage your professional indemnity insurance with Next digitally


Are you planning to buy other insurance policies aside from professional indemnity insurance? If so, Next is a great option . The company insures 130,000 small businesses and 1,000+ professionals,  so there’s no way that you can get covered. 


The best thing about Next is that it offers discounts if you decide to buy insurance policies in bundles. For example, if you only buy professional liability insurance, then Next’s standard rates apply. However, if you get professional indemnity insurance with general liability insurance, Next will decide to give you lower premiums so that you can save costs. 


In addition, many say that Next’s certificate of insurance can be acquired within minutes, and there’s no limit on how many copies you can get. And so, don’t forget Next  if you’re looking for a carrier that easily allows its policyholders to get proof of professional indemnity insurance. 


Best for: Buying professional indemnity insurance and other policies all at once

Average cost: $42

Our rating: 10/10




Hiscox Professional Indemnity Insurance


Why Get Insured by Hiscox?

  • Professional indemnity policy limit is $13 million

  • Hiscox professional indemnity insurance can cover a lot of situations constituting professional indemnity

Why Take Hiscox with a Grain of Salt?

  • Some report that Hiscox denied their claim even if was stated on paper that what happened can be covered


Hiscox’s professional indemnity is very comprehensive. It offers coverage for negligence, misrepresentation, defamation, breach of confidence, breach of copyright, and lost or damaged documents (note that defamation and breach of confidence are usually excluded in professional indemnity insurance). And so, it’s easy to realize that Hiscox is what immediately comes to mind upon thinking of getting indemnity insurance for established businesses.


Best for: Professional indemnity insurance with generous policy limits

Average cost: $46 

Our rating: 10/10




The Hartford Professional Indemnity Insurance


Why Get Insured by The Harford?

  • Has 200 years of experience underwriting professional indemnity insurance and other business insurance policies

Why Take The Hartford with a Grain of Salt?

  • Qualifying for The Hartford’s professional indemnity insurance requires a lot of documents


If you’re looking for a carrier with a proven track record and is sure to continue operating for the years to come, then go for The Hartford for your professional indemnity insurance. The company is a master of the ins and outs of insurance services. And so, it’s sure to provide the best coverage for misrepresentation, negligence, and inaccurate advice. 


Best for: Professional indemnity insurance provided by a company with a proven expertise

Average cost: $50

Our rating: 8/10




AIG Professional Indemnity Insurance


Why Get Insured by AIG?

  • Has specialized professional indemnity policies tailored for your business or professional service

Why Take AIG with a Grain of Salt?

  • Has a high number of customer complaints, which is surprising considering that AIG is a well-known multinational insurance company


The American International Group (AIG) offers specialized professional indemnity insurance depending on which industry you work for. AIG’s professional indemnity insurance products are specialty professional liability insurance, technology services indemnity insurance, robotics services indemnity insurance, media content indemnity insurance, publisher’s and broadcaster’s indemnity insurance, and ReputationGuard®. Note that AIG also offers personal indemnity insurance quotes.


Best for: Specialized professional indemnity insurance

Average cost: $54

Our rating: 7/10


Final Thoughts

Professional indemnity insurance is a policy that will protect you if the client files a lawsuit and accuses you of committing negligence, violation of good faith, giving inaccurate advice, and misrepresentation. Also, there’s no need to wonder what is indemnity insurance; It's just another term for professional indemnity insurance. In addition, PI insurance or PIII insurance also refer to the same thing. 

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