In their purest form are designed to cover financial loss suffered by third parties as a result of a breach of professional duty in the provision of professional services. Policies can be written to cover individuals or a corporation including its partners, principals, directors and employees.

Generally purchased by the more traditional professions such as architects, engineers, lawyers and financial service providers (E.G. accountants), any person who is providing advice and/or service for a fee should consider their exposures and the need for this type of cover.