Policy Exclusions You Should Know About
Imagine relying on Professional Indemnity Insurance (PII) to save your business, only to find out it doesn’t cover your situation. PII is a lifeline for professionals offering advice or services, protecting against claims of negligence or errors. But it’s not a catch-all—every policy has limits. Knowing these exclusions is just as important as understanding what’s covered.
This guide walks you through the most common PII exclusions, with real-life examples to bring them to life. It’ll help you spot gaps and ensure your business is fully protected. For a bigger picture, check out our Professional Indemnity Insurance: Coverage, Benefits, and Exclusions article.
Common Exclusions in Professional Indemnity Insurance
PII covers a lot, but there are key areas it won’t touch. Here’s what’s typically left out:
1. Intentional Misconduct & Fraud
If you deliberately cut corners or break the law, PII won’t bail you out.
Example: A financial consultant fakes investment returns to impress a client—when it unravels, PII doesn’t cover the fallout.
2. Contractual Liabilities Beyond Standard Terms
Promised more than the norm in a contract? PII might not stretch that far.
Example: A consultant guarantees a 50% revenue boost but falls short—standard PII won’t cover that extra liability.
3. Public Liability & Employee Injuries
Physical harm or damage isn’t Professional Indemnity’s territory—you’ll need separate policies:
- Public Liability Insurance (PLI) for third-party injuries and property damage.
- Employers’ Liability Insurance covers the costs of employee claims for illness or injury caused by their work due.
- Example: A client trips over a rug in your office and gets hurt—PLI, not PII, handles it. Learn more on our Public Liability Insurance page.
4. Cybercrime & Data Breaches
Digital threats like hacks need their own coverage—PII doesn’t step in here.
Example: A hacker breaches your client database—Cyber Liability Insurance, not PII, is the fix. See our Cyber Liability Insurance section.
5. Claims Outside the Policy Period
PII often works on a “claims-made” basis—if the claim is raised after your policy (and any extended reporting period ends), you’re uncovered.
Example: A aethetician’s client makes a claim regarding previous treatments after the policy lapses—no coverage applies.
For what PII does cover, dive into our What Does Professional Indemnity Insurance Cover? breakdown.
Real-Life Scenarios: When Exclusions Kick In
These stories show how exclusions play out:
Scenario 1: Consultant Caught in Fraud
A business consultant fudges data to land a big contract. The client sues when the truth comes out, but since it’s intentional misconduct, PII stays out of it—the consultant’s on their own.
Scenario 2: Beauty Salon’s Trip-and-Fall
A customer stumbles over a cord in a beauty salon, breaking their wrist. PII doesn’t cover physical injuries, so the salon needs Public Liability Insurance to step up.
Scenario 3: Therapist’s Cyber Nightmare
A cyberattack exposes a web therapist’s client info. PII doesn’t handle this type of data breach, leaving Cyber Insurance as the only lifeline.
More examples? Check out our Real-Life Claims: Professional Indemnity in Action article.
How to Ensure You’re Fully Protected
Don’t get caught off guard. Here’s how to cover all your bases:
- Read the Fine Print – Know your policy inside out.
All Westminster Insurance policies include Professional Indemnity, Public Liability & Medical Malpractice.
Extend cover with add-ons:
- Workplace Contents for equipment and furniture at your workplace
- Cyber Liability Insurance for digital risks.
- Employers’ Liability Insurance for staff-related claims.
- Tailor Your Plan – Match coverage to your business’s needs.
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Conclusion
Professional Indemnity Insurance is a powerful tool, but it’s not limitless. Understanding its exclusions helps you plug the gaps and keep your business safe from unexpected risks.
Why Westminster Insurance?
- Public Liability and Medical Malpractice included in every policy—at no extra cost.
- Up to £10 million in coverage.
- Hassle-free online quotes and claims.
The information provided in this article is accurate to the best of our knowledge at the time of publication. This content is intended for general informational purposes only and does not constitute professional advice, endorsement, or recommendation of any particular course, treatment, service, or product. Readers should always seek appropriate professional advice and check the latest policy documents and terms before making any decisions or commitments.
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