Without a professional indemnity policy, you would have to bear the entire cost of legal defence and any compensation out of your own funds. Even a single claim can run into lakhs or crores in legal fees and settlements, which can cripple a business financially.

PI Insurance is not legally mandatory for all professions in India. However, it is either practically or legally required for specific industries and contracts.

Yes. Freelancers and sole practitioners who provide professional services or advice can purchase PI insurance tailored to their practice size, risk exposure, and the nature of services they offer.

A professional indemnity insurance premium is calculated based on several risk factors. These include your profession and risk classification, the number of professionals covered, your annual revenue or turnover, the sum insured (Limit of Indemnity) you select, your past claims history, the geographic scope of your services (India-only vs international), and the deductible or excess amount you choose. Higher-risk professions such as healthcare and engineering typically attract higher premiums compared to lower-risk advisory roles. Maintaining a clean claims history and sound risk management practices can help keep your premium competitive.