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This type of insurance is only applicable to practices organised as a company. It covers the personal liability of directors, officers, and usually, employees, where a third party suffers loss from their act or omission in fulfilling their duties in relation to their role or functions in the company. It is not a substitute for the practice’s professional indemnity (PI) insurance, but covers risk of negligent failure in corporate governance, compliance with statutory duty in relation to company management, and the like.