If a client files a legal action over losses from your professional advice, which insurance would help cover the defense?

• A. Public Liability Insurance
• B. Product Liability Insurance
• C. Employers Liability Insurance
• D. Professional Indemnity Insurance

Answer: (D)

Professional Indemnity Insurance is designed to protect professionals when a client claims that losses resulted from your professional advice or services. If a client takes legal action over losses they allege came from your guidance, this type of policy typically covers the costs of defending the claim and, if needed, paying settlements or judgments up to the policy limit. It sits specifically to address risks tied to professional duties, such as negligence, errors or omissions in the advice you give.

Other insurances cover different risks: Public Liability covers third‑party physical injury or property damage; Product Liability covers damage or injury caused by products you supply or manufacture; Employers Liability covers injuries to employees while at work. None of those focus on claims arising from professional services or advice, which is why Professional Indemnity Insurance is the appropriate protection for defending a lawsuit centered on your professional guidance. As with all policies, check the details for limits, definitions of covered claims, and how defence costs interact with the overall limit.