The deliberate acts exclusion explained
Reviewed by Matthew Bartlett, Director, Apex Insurance Brokers Limited · Last reviewed 2026-08-05
Professional indemnity (PI) insurance is designed to respond when a professional makes a mistake — a negligent act, error or omission that causes a client financial loss. It is not designed to fund the consequences of choices a professional made on purpose. The deliberate acts exclusion is the wording that draws that line.
Because it sits close to the dishonesty exclusion, the two are often confused. They are not the same, and understanding the difference matters when you buy cover and, above all, when you make a claim.
What the deliberate acts exclusion actually does
A typical PI policy insures you for civil liability arising from the conduct of your professional business. The core promise assumes the liability was accidental in nature — you didn't mean to get it wrong. The deliberate acts exclusion carves out the opposite: liability arising from an act or omission that was intended to cause the injury, damage or loss that resulted.
The key concept is intent as to the outcome. It is not enough that you did something on purpose — almost every professional action is deliberate in that sense. The exclusion bites where you intended, or recklessly disregarded, the harmful consequence itself. Insurers rely on this because the whole basis of insurance is the transfer of fortuitous risk. You cannot insure against a loss you have chosen to bring about; there is nothing uncertain left to insure.
Deliberate acts versus dishonesty: the crucial distinction
These two exclusions overlap but answer different questions. Dishonesty is about moral quality — was there fraud, deception or bad faith? Deliberate acts are about intention as to result — did you mean the harm to happen? An act can be deliberate without being dishonest, and dishonest without a clean deliberate-harm intent.
| Feature | Deliberate acts exclusion | Dishonesty exclusion |
|---|---|---|
| Core test | Did you intend the harmful result? | Was there fraud or deception? |
| Concerned with | Intended consequence | Moral honesty of conduct |
| Typical trigger | Intentional or reckless wrongdoing | Fraud, theft, deliberate concealment |
| Innocent partners | Usually protected by a severability clause | Usually protected by a severability clause |
Consider an example. A consultant who, in a rush, gives advice they honestly believe is right but which turns out negligent is squarely covered — no intent to harm, no dishonesty. A consultant who knowingly submits a false report to deceive a client has crossed into dishonesty. A consultant who deliberately withholds a service they were paid for, meaning to leave the client short, may fall under the deliberate acts exclusion even if no fraud is alleged. One incident can, of course, engage both exclusions at once.
How intentional acts are treated in practice
Good PI wordings do not slam the door shut the moment an allegation of intent appears. A claimant will often plead deliberate conduct because it can increase what they recover. If the mere allegation defeated cover, the protection would be worthless. So most modern policies handle intentional acts with three important safeguards:
- Cover stands until proven. The exclusion commonly applies only once the deliberate act is established — by admission, judgment or a comparable finding — not on the strength of an accusation alone. Until then, defence costs are typically still met.
- Severability. An innocent partner, director or fellow employee generally keeps their cover even where a colleague acted deliberately. The wrongdoer's intent is not automatically imputed to everyone in the firm.
- Defence costs advanced. Insurers frequently pay to defend the claim as it runs, on terms that costs may be recoverable if a deliberate act is later proven against the individual concerned.
The practical effect is that a professional facing a wrongly pleaded allegation of intentional wrongdoing is usually defended, and only loses the indemnity if the deliberate harm is actually made out.
Not sure how your wording treats intentional acts? We read the exclusions before you buy, not after a claim.
Get a PI quote →Why the exclusion exists at all
Two principles sit behind it. The first is fortuity: insurance covers uncertain events, and a loss you deliberately engineer is not uncertain. The second is public policy — the long-standing rule that a person should not profit from, or be indemnified against, their own intentional wrongdoing. Allowing a professional to insure against harm they meant to cause would remove any financial deterrent to causing it. The exclusion keeps the incentive to behave honestly and carefully intact.
That is also why the exclusion is rarely negotiated away. What you can and should negotiate is how narrowly it is drafted, whether it turns on a proven finding rather than an allegation, and whether severability and defence-cost provisions are as generous as possible.
What this means when you choose a policy
Wordings vary widely, and the detail decides whether you are protected in the grey areas. When comparing PI cover — typically offered on limits such as £1m, £2m or £5m — look closely at:
- Whether the deliberate acts exclusion applies only after a proven act, or on allegation.
- Whether a severability clause protects innocent members of the firm.
- Whether defence costs are advanced during the claim.
- How reckless conduct is treated, since recklessness sits between negligence and intent.
A broker who understands these clauses can steer you toward wordings that defend you properly rather than leaving you exposed the moment intent is alleged. If you'd like your current exclusions checked, start a PI quote with Apex and we'll review the detail with you.
Common questions
Does the deliberate acts exclusion mean I lose cover the moment someone accuses me of intentional wrongdoing?
Usually not. Well-drafted policies apply the exclusion only once a deliberate act is actually established, and continue to fund your defence until then. Always check whether your wording turns on an allegation or a proven finding.
Is a deliberate act the same as a dishonest act?
No. Dishonesty concerns fraud or deception; a deliberate act concerns whether you intended the harmful result. An act can be one without the other, though a single event may trigger both exclusions together.
If a colleague acts deliberately, do I lose my cover too?
Generally not, where the policy contains a severability clause. That provision keeps innocent partners, directors and employees insured even when one individual's conduct is excluded.
Apex Insurance Brokers Limited is authorised and regulated by the Financial Conduct Authority (FRN 724952). This guide is general information, not advice on a specific policy or a substitute for your policy wording.