Claims
Professional Indemnity claims explained
How a PI claim actually unfolds — from a client complaint to notification, investigation and resolution.
What triggers a PI claim
A claim is typically triggered when a client, or a third party who relied on your professional service, alleges that your advice, design or service caused them financial loss.
This can range from a formal letter of demand to a court summons, but also includes circumstances that could reasonably lead to a claim later — which is why early notification matters.
Notify potential claims early
Most PI policies require you to notify your insurer as soon as you become aware of circumstances that could give rise to a claim, not only once a formal claim is received.
Late notification is one of the most common reasons an otherwise valid claim is disputed. If in doubt, notify — it does not commit you to anything, and it protects your position.
What happens after notification
Your insurer or their appointed attorneys typically investigate the circumstances, assess liability and quantum, and manage the response on your behalf, subject to your policy terms.
You should generally avoid admitting liability or agreeing to settle directly with a claimant before consulting your insurer.