Who this cover is for
Chartered Accountants (CAs), lawyers, IT service providers, architects, consulting engineers, management consultants, and tax practitioners.
Coverage scope
Policy scope is governed by insurer terms, endorsements, and policy schedules. Common provisions include:
Errors & Omissions (E&O) Defense
Coverage against financial losses incurred by clients due to unintentional mistakes in professional advice or design.
Legal Defense Costs & Expenses
Reimburses legal costs, advocate fees, and expert dispute expenses incurred in defending civil lawsuits.
Loss of Client Documents
Reimburses the cost of replacing or reconstructing lost or damaged deeds, audit books, or client digital files.
Libel, Slander & Breach of Confidentiality
Covers unintentional disclosure of client information or inadvertent defamation during practice.
Key limitations and exclusions
Every insurance contract outlines specific conditions, waiting periods, and deductibles to review before policy inception:
Intentional Fraud & Criminal Acts
Wilful dishonesty, fraudulent conduct, and criminal prosecution are strictly excluded from indemnity.
Fines and Penalties
Regulatory fines, statutory punitive penalties, and tax penalties levied against the practitioner are not indemnifiable.
Prior Known Disputes
Claims arising from circumstances known to the professional before policy inception are excluded under warranty.
How Sanghvi Consultancy assists you
With 45+ years of insurance experience in Navrangpura, Ahmedabad, Sanghvi Consultancy provides personal policy guidance:
- Structuring limits aligned with ICAI, Bar Council, or client contract requirements.
- Preserving unbroken retroactive coverage dates across consecutive policy renewals.
- Advisory on early notification protocols when a client dispute surfaces.
Frequently asked questions
Why do IT companies require Errors & Omissions (E&O)?
Software glitches, security bugs, or project delivery delays can cause severe business disruption to clients. E&O shields the tech provider against catastrophic commercial damage suits.
What does a Claims-Made basis mean?
Professional indemnity operates on a Claims-Made basis: both the act that caused the damage and the formal lawsuit must occur while the policy is active (or after the agreed retroactive date).
Discuss your policy with an advisor.
Get clear answers on policy terms, insurer waiting periods, and claim support without aggressive sales calls.