Professional Indemnity - Errors & Omissions Insurance UAE

What is Professional Indemnity Insurance?

Professional indemnity insurance (PI insurance), also known as business indemnity insurance, protects businesses and professionals against claims of negligence, mistakes, or omissions in the services they provide. This coverage can shield you from expensive legal fees and compensation payouts.

In simpler terms, if a client suffers financial loss because of something you did (or failed to do) in your professional capacity, this policy helps cover the costs.

Example:

A surgeon performs an operation where all medical protocols are followed. Despite the best efforts, the patient’s condition worsens and the patient unfortunately passes away. In a highly emotional state, the family could file a legal claim against the surgeon, alleging negligence. In such a scenario, business indemnity insurance helps —

Cover legal defence costs
Appoint legal representation
Pay compensation if found liable (within policy limits)

Claims are only valid if:

The event happened during the policy period or the retroactive period.
The claim is made and reported during the active term of the policy.

Why Do You Need PI Insurance in the UAE?

Even the most skilled professionals can make errors. Whether it is a misplaced document, flawed design, or wrong piece of advice, such errors can cause significant losses to a client. In such cases, you could be sued for damages. Professional indemnity insurance UAE covers not only compensation payouts but also legal defence costs.

It’s especially relevant in Dubai, Abu Dhabi, and other emirates where service-based industries are thriving and client expectations are high.

Protects your income and assets in the event of a lawsuit
Covers unexpected legal costs that could financially drain your business
Maintain your reputation by funding proper legal defence
Builds client trust by showing professionalism and accountability
Complies with regulations in many industries

Who Should Consider Buying Business Indemnity Insurance?

Any professional or business offering advice, consultation, or a specialised service should consider business indemnity insurance. This includes —

Individuals

Doctors, Surgeons, and Dentists
Chartered Accountants
Architects and Engineers
Lawyers and Legal Consultants
IT Consultants and Software Developers
Management and Financial Consultants

Entities

Law firms
Healthcare establishments
Tech/IT service providers
Marketing and PR agencies
Financial advisory firms
Engineering and architecture firms

In some sectors (e.g. healthcare, finance, engineering), this insurance is mandatory by regulatory bodies. Even freelancers and small firms in Dubai and across the UAE can face significant risk without this protection.

How Does Professional Indemnity Insurance in Dubai Work?

Let’s say you're a financial consultant in Dubai and a client sues you for a loss they claim resulted from your advice. If you hold professional and indemnity insurance —

Report Immediately: Notify your insurer as soon as you suspect a claim may arise.
Submit Documents: Include any legal notices, correspondence, and incident reports.
Cooperate with the Insurer: Provide full support during investigations and legal proceedings.
Defence and Payout: The insurer appoints a legal team and, if necessary, compensates the client within your policy’s limits.

What’s the Professional Indemnity Insurance Cost in the UAE?

The professional indemnity insurance cost in UAE varies based on several factors, including —

Nature of your profession
Size of your business
Level of risk exposure
Claims history
Required policy limit (sum insured)

For small consultancies, basic coverage might start from AED 1,500 per year. However, higher-risk professions or larger firms may pay significantly more.

What Does Professional Liability Insurance Cover and Not Cover?

The scope of coverage in PII insurance can vary by insurer. It’s better to check the list of Professional indemnity insurance inclusions and exclusions —

✅ What’s Generally Included

Negligence: Mistakes, incorrect advice, or oversight in service delivery.

Legal Costs: Costs related to legal defence and court proceedings.

Compensation/Damages: Amounts payable to the client if the court rules against you.

Defamation: Claims involving libel or slander.

Breach of Confidentiality: Inadvertent disclosure of sensitive client information.

Loss of Documents or Data: Costs for restoring or recovering lost/stolen documents or electronic records.

Infringement of Intellectual Property: Unintentional use of third-party content or IP.

Employee Misconduct: Dishonest or fraudulent acts by employees, if covered.

❌ What’s Usually Excluded

Criminal Acts: Intentional wrongdoing, fraud, or illegal activity.

Fines and Penalties: Any government-imposed fines or punitive damages.

Known Issues: Incidents known before the policy was purchased.

War and Nuclear Risks: Losses from war, terrorism, or nuclear hazards.

Bankruptcy or Insolvency: Claims related to the insured's financial failure.

General Liabilities: Personal accidents or injuries not linked to professional services.

Take a Note: Make sure you read the fine print and work with a trusted advisor before purchasing your policy.

Add-ons and Extended Coverage

You can upgrade your professional errors and omissions insurance in UAE with useful extensions —

Retroactive cover for past work
Coverage for subcontractor errors
Bodily injury due to breach of professional duty
Intellectual property infringement
Cyber liability protection

These add-ons help tailor your PII insurance to your specific risk profile. This ensures that your coverage meets the unique needs of your business.

How to Choose the Right Personal Indemnity Insurance in UAE?

When selecting a policy for professional indemnity insurance Dubai professionals should consider —

Coverage Limit: Ensure it matches the risk profile of your work. Higher-risk sectors may need larger coverage.
Retroactive Date: Make sure the policy covers past work (from when you started practice).
Geographic Scope: Choose global coverage if you serve international clients.
Claim Handling: Check the insurer’s track record for claims support and dispute resolution.
Add-ons: Some insurers offer useful extensions like —
- Bodily injury coverage (from breach of professional duty)
- Subcontractor liability
- Cyber liability cover
- IP infringement protection

Providers like Policybazaar.ae are popular among UAE professionals for their localised support and tailored packages.

Why Buy Personal Indemnity Insurance from Policybazaar.ae?

Purchasing through a platform like Policybazaar.ae offers comes with a variety of benefits —

Expert advice to match your profession’s risk
Quote comparisons from multiple insurers
Assistance in claims processing
Help with identifying the right add-ons for your needs

What Do You Need to Get a Quote?

To obtain a quote, insurers will usually request —

Your profession and type of services offered
Business size and turnover
Experience in the industry
Details of previous claims (if any)
Desired sum insured and cover period

Important Note: Only civil liability claims are covered. Criminal liability is not included. Also, prompt reporting is key.

Common Policy Structures

Most PI policies are claims-made, meaning —

They only cover claims filed and reported while the policy is active.
Events before the retroactive date or after the policy ends are not covered, even if they occurred while the insured was practicing.

Buy Personal Indemnity Insurance from Policybazaar.ae!

Final Thoughts

If you provide advice or specialist services in the UAE, professional indemnity insurance isn’t just a smart choice—it’s a safeguard for your career and reputation. From architects in Dubai to consultants in Abu Dhabi, it gives peace of mind that your business won’t be financially derailed by one honest mistake.

Take the time to compare policies, get multiple quotes, and choose coverage that suits your risks. For many professionals, that one decision could make all the difference.

Frequently Asked Questions

Professional Errors and Omissions Insurance (E&O) protects professionals from legal claims arising due to mistakes, missed steps, or negligence while offering services. It covers legal expenses and compensation if a client suffers financial loss because of your work.

It’s not mandatory in the UAE but strongly recommended for professionals like doctors, lawyers, architects, and consultants. It protects you from legal claims related to your professional advice or service.

Public liability covers injury or property damage caused to others during your business operations. Professional indemnity covers claims arising from errors or negligence in your professional advice or service.

Professional negligence happens when a service provider, like a doctor, makes a mistake or fails to act responsibly, causing harm, injury, or loss to the client or patient.

Some additional covers and upgrades that you can expect in Errors and Omissions coverage-

Unintended use of another person's intellectual property;
Bodily harm (resulting from the breach of professional responsibility);
Coverage for responsibility brought on by the wrongdoing of consultants, agents, or subcontractors

Professional Indemnity Insurance financially protects businesses that render services or advice to clients. Such individuals or businesses usually comprise medical professionals, architects, insurance brokers, lawyers, accountants, real estate consultants, financial institutions, IT experts, marketing and media agencies, and so forth.

Professional Indemnity Insurance covers the costs related to regulatory court hearings along with defence costs. These plans also cover damages and settlements arising from any liability cases.

Other Insurance Products

Professional Indemnity Insurance in Dubai, UAE