Professional indemnity insurance covers the legal and financial consequences of an error, omission, or breach of professional duty in your work. If a client suffers a financial loss because of advice you gave or a service you rendered and holds you legally responsible , professional indemnity insurance pays the legal defence costs and any compensation awarded. Most professionals in India do not have it. Those who have faced claims wish they had bought it before it happened.
Who Needs Professional Indemnity Insurance
- Doctors and medical professionals — medical negligence claims are increasing in India
- Chartered accountants and tax consultants — errors in tax filings, audits, or financial advice
- Architects and engineers — design flaws that cause financial loss or delays
- IT professionals and software developers — system failures or data breaches from faulty code or advice
- Legal professionals — negligent advice or inadequate representation
- Financial advisors and investment managers — unsuitable product recommendations
- Management consultants — advice that leads to measurable business losses
What It Covers
- Legal costs of defending a professional negligence claim
- Compensation amounts awarded to the claimant if the claim is upheld
- Claims arising from errors and omissions in professional work
- Claims arising from unintentional breach of client confidentiality in some policies
What It Does Not Cover
- Deliberate, wilful, or fraudulent acts
- Bodily injury or property damage covered under separate public liability insurance
- Claims arising before the policy’s retroactive date
The retroactive date is important. Most PI policies are claims-made: the policy in force when a claim is filed responds, not the policy in force when the error occurred. A retroactive date set to your firm’s founding date provides the broadest historical coverage.
Premium Range in India
As a guide for 2026: a sole practitioner CA or architect seeking ₹50 lakh cover typically pays ₹15,000–40,000 annually. A mid-size IT consulting firm seeking ₹5 crore cover typically pays ₹2–5 lakh annually. Premiums vary by profession, annual revenue, and coverage limit.
Draco Insurance places professional indemnity policies for doctors, CAs, architects, IT firms, and consultants. Visit dracoinsurance.in or call +91 7064106417.
“Even if we do not talk about 5G (specifically), the security talent in general in the country is very sparse at the moment. We need to get more (security) professionals in the system”
Bharti Airtel, for example, has been preparing for 5G roll out by upskilling its professionals and offering them certification courses such as CCNA (Cisco Certified Network Associate) and CCNP (Cisco Certified Network Professional). The courses are offered based on skill and eligibility level free of cost.
