There is no difference between professional liability or indemnity insurance and really the terms are identical. The only difference is when these terms are used: Professional liability is most often used in the United States while professional indemnity is more likely to be used outside of the U.S.
Professional Liability vs Professional Indemnity Insurance
Updated: February 1, 2026
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What Is The Difference Between Professional Liability and Professional Indemnity Insurance?
When the Distinction Between Professional Liability and Professional Indemnity Insurance Matters
The names of professional liability or professional indemnity can affect:
- Contract compliance: Some service contracts, especially with international clients or public bodies, specify “professional indemnity insurance.” If your policy is labeled “professional liability,” you might need an endorsement or certificate renaming the coverage.
- Licensing or regulatory requirements: Certain licensing boards or professional bodies (more common outside the U.S.) reference professional indemnity by name in their insurance standards.
- Broker and insurer language: Insurers and brokers sometimes use one term regionally or industry-specifically, which can lead to confusion among business owners.
Professional Liability vs Professional Indemnity: Next Steps
To choose the right coverage:
- Read your policy wording carefully that determines what’s covered, not the name.
- Check client contracts and licensing requirements for exact naming terms.
- Compare quotes from multiple insurers to find the best combination of limits, price, and claims handling.
- Talk with a licensed insurance professional to confirm that the coverage matches your business’s risk profile.
About Angelique Palenzuela-Cruz
Angelique Palenzuela-Cruz is a Content Writer at MoneyGeek specializing in business insurance. She focuses on general liability, workers' compensation and professional liability coverage, helping small business owners cut through policy jargon and understand what they're actually buying.
Angelique has spent over five years reporting on personal finance, with deep experience in both insurance and lending markets. Her psychology background also gives her a unique understanding of how people actually process difficult financial decisions, allowing her to meet readers where they are, simplify complex concepts and build decision making frameworks that give them confidence. Whether you're learning about policies, comparing providers or trying to figure out requirements, Angelique does the legwork, digging into regulations, analyzing policy language and testing her explanations against agent-level standards so you get straight answers without fluff.