Insurance taken out by a professional firm, eg. solicitors, to cover itself against claims for negligent acts, omissions or advice, up to the financial limits detailed in the policy.
Insurance intended to protect the insured from the legal consequences of the actions of an individual or a third party e.g. the policy would pay the costs incurred by any legal action and consequent award, resulting from, say, professional negligence.
An insurance policy that covers advisers in the event of loss due to negligent advice. (see also Choosing a financial planner)