Why get Professional Indemnity insurance?

  • Even the most experienced professional can make a mistake
  • Your service agreement isn’t enough to fully protect you
  • Clients are not necessarily friends and may hold you accountable for losses due to errors you made
  • Your business is an asset to protect against adverse events that may hurt the financial stability of your company
  • Hiring a lawyer in case of a legal dispute is not cheap, but this cost can be accounted for and included in your service fees through an insurance policy

How we can help you

How professional indemnity insurance can help our clients


  • An employee of an audit firm was requested by the CFO of a subsidiary of a foreign company, client of this audit firm, to overstate the annual turnover of the company. This financial report was then sent to the headquarters of the subsidiary.
  • Later, it was found out the statements were wrong. Both subsidiary and headquarters were required to pay taxes on profit and thus suffered a financial loss.
  • The audit firm was held liable of this financial loss and its professional indemnity insurance indemnified both the subsidiary and headquarters.


A video shooting company is filming a live sports event and providing the live feed to their client, a sports broadcasting company. Due to an equipment malfunction, the video feed of one of the cameras is cut out and the shooting company takes 28 seconds to replace the missing signal with one from a reserve camera.

According to their service contract, the video shooting company is liable to pay 5% of their service fee to their client due to this error, which is to be deducted from their fee. This financial loss is indemnified by their professional indemnity insurance.


An IT consultant company (the insured) sold a virtual server to a client, who in turn sold it on to their client. The IT consultant however retained responsibility for the provision of the ‘back up’ process to the end client. Some work was subsequently undertaken by a sub-contractor on the server, and as a result the end client lost 16 months worth of data.

The Insured had some liability as they were responsible for maintaining the back-up process, which unbeknown to the Insured had failed. The data was therefore irrecoverably lost and the relevant parties negotiated a settlement. The insured’s part of the settlement was partly recovered from the original owner of the server and the rest by the insurer.

Applying for Professional Indemnity insurance

  • Every business is different, and so is every insurance company. To be covered properly, we need to understand your company and operation. This can be done digitally at your convenience.
  • Make sure that you’re not over-insured and paying more than necessary, nor under-insured and at risk of not getting full cover in case of a claim.
  • If the company is contractually obligated to have some type of insurance cover, please share such information to ensure that the policy meets your needs.
  • Once you provide all the relevant information through a questionnaire and e-mail, we will approach our insurer partners most suitable for the policy you are looking for. If no further clarification is needed, each of them will issue a proposal.
  • Choose the most appropriate proposal and start your cover.

Asian Risks Management Services Limited (ARMS) is an international consultant advising clients on insurable risks. Independent from any insurance providers, ARMS act to the best of our clients.

Contact Asian-Risks to find your ideal credit insurance solution in China.