Professional indemnity cover, also known as PI cover, insures professionals against claims resulting from lawsuits filed by clients who feel they were damaged or experienced a loss due to negligence by the insured individual or business entity. These claims are usually for financial compensation and can sometimes even include "pain and suffering" or punitive damages. As an example, imagine an individual with skin problems goes to a dermatologist. The dermatologist tells the patient that they can use a laser to clear up the skin problems. The patient agrees but the dermatologist uses the incorrect laser for the patients' skin type. As a result of the dermatologist's negligence, the patient experiences even worse scarring to their face. The patient then sues the dermatologist for the money paid for the treatment as well as punitive damages. The punitive damages will compensate the patient for having to suffer the embarrassment of the prominent scars on their face. Professional indemnity cover will pay the patient on the dermatologists' behalf.