Covers the legal liability of professionals — lawyers, accountants, tax agents, architects, consultants, IT developers and the like — for loss caused to a client by negligence, error or omission in the course of their work.
N2N Insurance Brokerage does not represent any single insurer — it independently represents the client as an FSS-registered broker (Reg. No. 2026-012201). We compare the wordings, rates and service of AIG · Chubb · DB · Hyundai · KB · Meritz to propose the cover and price best suited to your risk. Each insurer's full wording is provided at application and binding.
Professional Indemnity Insurance (Errors & Omissions, E&O) covers the insured's legal liability where, in providing professional services or advice, they cause financial loss to a client or third party through negligence, error or omission.
It applies across all advisory fields — lawyers, accountants, tax agents, judicial scriveners, architects, engineers, IT consultants, advertising agencies, insurance brokers and others.
Dedicated wordings tailored to each profession — legal, accounting, design, IT — to minimise cover gaps.
Defense costs for litigation, arbitration and expert assessment are advanced from the early stage of an incident.
A Retroactive Date and ERP design manage latent risk from past work.
Used to satisfy statutory cover requirements for insurance brokers, licensed real-estate agents, certified public accountants and others.
Lawyers, judicial scriveners, accountants, tax agents, patent attorneys and other licensed professionals.
Architects, structural engineers, supervision firms and engineering companies.
Management consultants, IT developers, SI firms and advertising/marketing agencies.
Insurance brokers, licensed agents, asset managers and investment advisers subject to statutory requirements.
| Policy period | 1 year (Claims-Made basis) |
|---|---|
| Payment | Single (annual) payment |
| Insurers | AIG · Chubb · DB · Hyundai · Meritz |
| Channel | Individual consultation with our adviser (+82-10-5755-6465) |
| Turnaround | 5–7 business days |
If the insured event has already occurred at the time the contract is made, the contract is void. However, where the contract is void due to the company's intent or negligence, or where the company knew or could have known of the nullity before acceptance yet did not refund the premium, the company refunds the premium with interest at the policy-loan rate published by the Korea Insurance Development Institute, compounded annually, for the period from the day after payment to the day of refund.
The specific losses not covered (exclusions) are set out in each insurer's policy wording and product description; on this page, see the “Cover” tab(or the “Losses not covered” section) for the main exclusions. For other cover-specific grounds on which claims are not paid, please refer to the policy wording.
The company provides cover, in accordance with the policy, from the time it accepts the application and receives the first premium. Where the company accepts the application after receiving the first premium with it, cover also begins from the time the first premium was received.
The application must be completed by the policyholder, and the policyholder and the insured must sign it by hand. Failure to sign by hand may result in disadvantages regarding the validity of the contract. On an internet cyber-mall, an electronic signature may be used instead.
The policyholder has the right to be given and have explained the information needed about the product they wish to buy.
The insurer and N2N Insurance Brokerage must explain the important matters of the product to ordinary financial consumers.
When applying, the policyholder, the insured or their agent must disclose truthfully the facts they know regarding the questions in the application (including the questionnaire). Otherwise the claim may be declined or the contract cancelled. Where insurance is taken out by telephone or other means of communication, the duty is performed by answering the seller's questions, which are recorded, without a separate written questionnaire, so answers must be given with particular care.
If, after the contract is made, any of the following arises in respect of the subject-matter insured, the policyholder or the insured must notify the company in writing without delay and obtain endorsement on the policy.
The surrender value is the amount paid if the contract is cancelled early. Unlike bank savings, insurance combines risk protection and savings: part of the premium is paid out as claims to other policyholders who suffer accidents, and part covers the insurer's operating expenses, so the surrender value on early cancellation may be less than the premiums paid, or nil.
Under Article 59-4(1) of the Income Tax Act (special tax credit), for protection-type insurance taken out by an employee only, a tax credit of 12% of the premium paid (capped at KRW 1 million per year) is available. Tax matters may change with amendment or repeal of the relevant tax law.
Except as provided by law, the insurer and N2N Insurance Brokerage do not collect, use, inspect or provide personal data related to this contract — for its conclusion, maintenance and claim payment — without the consent of the policyholder, the insured or the beneficiary. However, for those purposes the insurer may, with the consent of the policyholder and the insured and in accordance with law, provide personal data to other insurers and insurance-related bodies.
The above is a summary and excerpt of the policy wording; for grounds on which claims are not paid and other details, please refer to the policy wording and product description.
Risk patterns common in professional advisory work — a 5-scenario self-check
Advisory work — legal, accounting, design, IT, consulting, advertising — can cause a client financial loss through negligence, error or omission in carrying it out.
Some professionals — insurance brokers, licensed real-estate agents, certified public accountants — are required by law to hold professional indemnity insurance.
Defects in, or delays to, system-development and consulting deliverables can cause loss to the client and give rise to claims.
Claims on professional work are sometimes brought long afterwards. Managing latent risk from past work calls for a well-set Retroactive Date.
Claims-Made cover is prone to gaps, so on renewal or switching, check the continuity of the Retroactive Date and the Extended Reporting Period (ERP).
The two most important dates in professional indemnity (E&O) are the ‘Retroactive Date’ and the ‘Reporting Period’. Because it is written on a Claims-Made basis, it covers a claim made during the policy period only if the work giving rise to it was performed after the Retroactive Date. If, when switching or renewing, the Retroactive Date moves forward, claims from work done in the interim can fall into a cover gap. Claims relating to past work can also arrive after the policy ends, so designing the Extended Reporting Period (ERP) matters. With E&O the key is not ‘that you bought it’ but ‘from when the work is covered and until when it can be reported’.
Source: (standard insurance-textbook scenario)
The wording and structure items decision-makers most often overlook
Claims-Made cover only covers work done after the Retroactive Date. If that date moves forward when switching insurers, claims from interim work drop out of cover.
Claims relating to past work can arrive after the policy ends. An ERP endorsement should be designed so such claims can be reported for a set period after termination.
Risks and dedicated wordings differ by profession — legal, accounting, design, IT. Check that the policy's definition of covered work captures the work you actually perform.
The questions asked most when considering professional indemnity (E&O)
It is liability insurance covering the financial loss caused to a client, and the defense costs, when a professional providing services or advice is negligent or makes an error or omission. It applies across advisory work — lawyers, accountants, architects, engineers, IT consultants, advertising agencies, insurance brokers and others.
Some professionals — insurance brokers, licensed real-estate agents, certified public accountants — are required by law to hold professional indemnity insurance. The standard differs by licence and field, so confirm it against the relevant law.
In a Claims-Made policy it is the start date from which covered work runs. Claims arising from work done after the Retroactive Date are covered, so when switching insurers, ensure the date does not move forward.
Claims-Made cover responds to claims made during the policy period. Because claims on past work can arrive after termination, an ERP endorsement is designed so such claims can be reported for a set period afterwards.
No. Loss from willful acts, crime or fraud is excluded. E&O covers professional liability arising from ‘negligence, error or omission’.
The insurer calculates it based on profession and work risk, revenue, the limit, the Retroactive Date and Reporting Period design, and past claims history. The exact premium and terms are confirmed after underwriting by insurers such as AIG, Chubb, DB, Hyundai, KB and Meritz.
