Professional indemnity insurance is designed to protect a professional person (or firm) such as doctor, lawyer, architect, accountant or insurance broker against legal liability to pay damages and costs to persons sustaining loss through a breach of professional duty i.e. breach of contract or liability in tort.
Liability in tort arises from professional negligence, which is the neglect of a professional duty of care that renders the professional person committing the act, error or omission of neglect liable in law to a client or some other third party who suffers loss as a result of the neglect.
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