Transaction Advisory PI Insurance

Transaction advisory Professional Indemnity insurance covers the advice and deliverables a transaction adviser provides on a deal - due diligence support, financial modelling, quality of earnings analysis, transaction documentation and the advice the parties rely on. It responds when a client alleges that work was negligent and caused them a financial loss, and it funds the cost of defending that allegation, including claims that are ultimately unproven.

PI is built around the professional services you provide and the documents others rely on - due diligence findings, financial models, earnings analysis, structuring advice and transaction documentation. The cover is mapped to your scope. Activities that drift toward holding client money, acting as a principal in the deal, or providing licensed financial product advice can change the risk and may need specialist financial-lines treatment, which is why we review your scope before placing.

No. Warranty and indemnity (W&I) and transaction liability cover sit on the deal and respond to a breach of the representations and warranties between buyer and seller. Transaction advisory PI sits on you, the adviser, and responds to allegations your professional work was negligent. They are different products that can both be present on a transaction. This page is about the adviser's PI.

It does not insure the commercial outcome of the deal, it does not respond to fraud or intentional wrongdoing, and it does not cover the seller's warranties (that is W&I). Known claims or circumstances not disclosed to the insurer are excluded, and liabilities of other advisers on the transaction sit with them. Scope creep beyond your engagement terms is a common pressure point, so clear engagement letters and reliance wording matter.

The limit is driven by the size of the transactions you support, not your fee income, because a single error can flow into a loss many times your engagement fee. Limits commonly sit at $5M, $10M or $20M, and counterparties or mandates often specify the figure you must hold. See our guide to high-limit and contract-required PI.

Often, yes. Transaction and corporate advisory work sits outside the appetite of many generalist PI insurers, so a referral, exclusion or step-back reflects one market's appetite rather than the whole market. We map the specialist financial-lines underwriters who write this class and present the submission the way they need to see it. See declined and hard-to-place PI.