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is professional indemnity insurance the same as directors and officers?

QuestionsCategory: Directors & Officers Liability Insuranceis professional indemnity insurance the same as directors and officers?
default avatarPlan Cover Staff asked 3 weeks ago

1 Answers

Best Answer

default avatarSrinivasan Mahadevan Staff answered 3 weeks ago
Directors and Officers liability insurance covers directors and officers’ liability. It provides financial assistance by paying for the defence costs of company directors or senior managers for a claim made against them. This insurance is purchased by the company for covering their directors and officers. 
Professional Indemnity insurance also known as PI insurance – is intended to protect professionals and their businesses in the event of claims made by a client (or third party) for a loss suffered as a result of non-performance, breach of contract and/or professional negligence in the services. In addition, the policy will cover legal and other costs and expenses incurred in the defence of any claim.
 
Directors and Officers insurance is aimed to provide financial assistance should directors and officers of your business named in legal actions which will require legal costs to be covered should a claim be made against them. Whereas Professional indemnity insurance covers errors the business has made that impacts their clients business. 

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