Professional Indemnity Insurance (also known as Errors & Omissions (E&O) protects maritime professionals and companies against claims arising from negligence, errors, omissions, or breach of professional duty committed during the performance of professional services.
It responds to financial losses suffered by third parties—not physical damage—caused by mistakes in advice, documentation, technical work, or failure to fulfil a professional obligation.
PI insurance safeguards marine professionals from:
• Costly legal actions
• Contractual disputes
• Pure financial loss claims (not covered by liability or H&M policies)
• Reputational damage stemming from professional mistakes
Marine PI policies generally cover liability arising from:

1. Professional Negligence
• Incorrect cargo stowage recommendation
• Wrong draught, stability, or ballast calculations
• Faulty marine engineering design
• Errors in issuing bills of lading or cargo documentation

2. Errors & Omissions (E&O)
• Misrepresentation
• Inaccurate reports or certificates
• Misdescription of cargo or vessel condition

3. Breach of Professional Duty
• Failure to follow industry standards (IMO rules, class requirements, port regulations)

4. Defence Costs
• Legal defence expenses
• Expert witness fees
• Settlement negotiation costs

5. Third Party Financial Loss
• Pure economic loss not linked to physical damage
(Example: incorrect draft survey leading to under or over claimed cargo quantities)

Common Exclusions in Marine PI

Marine PI normally does not cover:
• Deliberate or dishonest acts
• Physical loss or damage (covered by P&I, H&M, cargo insurance)
• Bodily injury or property damage
• Fines & penalties (unless specifically endorsed)
• Pollution liabilities
• War & cyber risks (unless extended)
• Contractual liability beyond normal legal duty

These exclusions reflect the intent of PI: to cover purely professional mistakes—not operational or physical risks.