You send a marketing email that includes an incorrect claim about your service. A regulator investigates and issues a civil penalty notice. You incur legal costs to respond and face a fine that may be insurable.

Statutory liability insurance may help with defence costs and, if insurable and included, certain civil fines or penalties, subject to terms.

A client complains to a regulator or professional body about your work. You are asked to attend an interview and provide documents. You need a lawyer to guide your response and represent you during the inquiry.

Investigation costs insurance may help pay legal representation for a regulator or professional body inquiry about your work, subject to terms.

You write an assessment report for a client and include a comment about another contractor that is later alleged to be untrue. The contractor says the statement damages their reputation and starts legal action against your business.

Defamation insurance may help with libel or slander claims linked to your work. It may cover defence costs and damages, subject to terms.

You are an IT consultant and recommend a software setup that fails during a busy month. The client loses sales and pays extra to rebuild the system. They say your advice was negligent and demand you reimburse their losses.

Civil liability insurance may help if your advice causes a client financial loss. It may also cover legal defence costs, subject to terms.

You supply a product or complete physical installation work for a client, but the result is faulty and does not perform as expected. The client wants you to pay the cost of repairing, replacing or redoing the work.

Professional Indemnity usually does not cover the cost of repairing, replacing or redoing faulty products or physical workmanship. It also usually does not cover claims about product performance, quality or durability where those issues fall within the policy exclusions.

A former staff member says they were bullied, unfairly dismissed or otherwise treated unlawfully at work. They bring a claim against your business for the way they were managed during their employment.

Professional Indemnity usually does not cover employment-related claims, including allegations such as bullying, unfair dismissal, discrimination or other workplace disputes. It also usually does not cover liability for personal injury to an employee under this wording.

A hacker gets into your business systems through a security failure and steals client data. Clients then allege the breach caused them loss and make a claim against your business for the fallout from the incident.

Professional Indemnity usually does not cover claims arising from cyber incidents such as hacking, unauthorised access, ransomware, malicious code or data breaches affecting your systems. These events are generally excluded under this wording.

You sign a client contract that says you will be responsible for any loss connected to the project, even if the loss is much broader than what you would normally be legally liable for. Later, the client relies on that clause and demands payment under the contract.

Professional Indemnity usually does not cover liability you take on under a contract or agreement if that liability would not otherwise exist under the law. It may still respond where the liability would have applied anyway, subject to the policy terms.