Professional Indemnity is a type of insurance that protects professionals against claims of negligence or inadequate work. It is particularly important for those in fields like law, accounting, and consulting, where clients may seek compensation for financial losses due to professional errors or omissions. This insurance covers legal costs and any settlements that may arise from such claims. By having Professional Indemnity insurance, professionals can safeguard their reputation and financial stability, ensuring they can continue to operate without the fear of significant financial repercussions from potential lawsuits.