What Is Not Covered by PI Insurance? Common Exclusions

PI policies exclude certain situations. Understanding these gaps helps identify what additional insurance you might need.

Standard Exclusions

Intentional dishonesty or fraud, criminal acts, contractual liability (breach of contract alone), bodily injury or property damage, regulatory fines, and errors before retroactive date.

Employment-Related Liability

PI doesn't cover wrongful termination, discrimination, or harassment. You need separate employment liability insurance.

Cyber/Data Breach

Base PI policies typically don't cover data breaches or GDPR violations. You need cyber extension or separate policy.

Directors & Officers Liability

Personal liability for directors isn't covered. You need separate D&O insurance.

Additional Insurance Needed

Public liability, cyber insurance, employment liability, D&O insurance, crime insurance, and statutory liability.

"Most denials are due to late notification, non-disclosure, or misunderstanding scope."

— UK Insurance Ombudsman

Frequently Asked Questions