A professional indemnity insurance policy operates by providing financial protection to professionals and businesses against claims made by their clients regarding the professional services or consultations rendered.

The professional indemnity insurance coverage follows a claims-made basis, meaning it indemnifies your professional liability for claims made during the policy period specifically related to negligence, errors, omissions, and similar occurrences.

Professional indemnity insurance excludes coverage for claims related to incidents occurring before its start. In rare cases, certain insurance plans may extend coverage for medical treatments administered before the policy commencement, though this is typically limited to very large practices.