Cover if your advice, design or service was negligent and cost a client money, for consultants, accountants, IT contractors and anyone giving professional advice.
Cover if your advice, design or service was negligent and cost a client money, for consultants, accountants, IT contractors and anyone giving professional advice.
Negligence claimsErrors & omissionsLegal defence costs
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Professional indemnity insurance covers claims that your advice, design or professional service was negligent and caused a client financial loss, even if you didn’t actually make a mistake. It pays your legal defence costs and any compensation awarded, protecting your business and your personal assets from a single bad claim.
It’s a “claims-made” policy: it responds to claims made while the policy is active, not just work done during that period. That difference matters more than people realise.
Professional indemnity insurance can include:
Negligence claimsBreach of professional dutyLegal defence costsDefamation and IP disputesDishonesty by an employeeCover up to £10 million
For most businesses it isn’t legally required, but it is mandatory for some regulated professions. Solicitors, accountants, architects, surveyors and FCA-authorised firms must hold it as a condition of practising, and many client contracts require it regardless of sector.
It responds when a client says your work fell short, whether or not you agree, and whether or not you actually made a mistake.
Professional indemnity typically covers:
Negligent advice or designErrors and omissionsBreach of confidentialityDefamation claimsIntellectual property disputesDishonesty by an employee
How much professional indemnity cover do you need?
How much professional indemnity cover do you need?
There’s no legal minimum, but many contracts and professional bodies set their own requirement, check yours before choosing a limit.
There’s no legal minimum, but many contracts and professional bodies set their own requirement, check yours before choosing a limit.
| Level of cover | Typical for | Watch out for |
|---|---|---|
£100,000 | Freelancers and small sole traders | Often too low for professional body membership |
£250,000 | Consultants and small agencies | A common minimum for contract work |
£1 million | Accountants, IT contractors and most client contracts | What many professional bodies require as standard |
£5 million | Large contracts, regulated professions and PII-mandated bodies | Check whether your regulator sets a higher minimum |
Top Tip
Check your professional body, client contracts and any regulator before choosing a limit, many, including accountancy and legal bodies, set their own minimum indemnity requirements.
How professional indemnity actually works
Unlike public or employers’ liability, professional indemnity is “claims-made.” It responds to claims made while your policy is live, not claims about work done while a past policy was active.
This affects you if:
You let your policy lapse, even brieflyYou retire, close or sell your businessYou switch insurers mid-yearA client claims about work from years agoYou go from limited company to sole traderYou take a break from trading
There’s no fixed price for professional indemnity insurance. Your premium depends mainly on your profession, your turnover, the indemnity limit you choose and your claims history, higher-risk advice work costs more to cover than routine consultancy.
Your profession
Financial and construction-related advice is rated higher than general consultancy.
Claims history
A clean claims record helps keep premiums down at renewal.
Turnover
Insurers often price partly on your annual fee income, not just headcount.
Contract requirements
Client contracts and professional bodies sometimes require a specific minimum limit.
Indemnity limit
£5 million cover costs more than £250,000, though the gap is often smaller than expected.
Run-off needs
Cover for work after you stop trading can add to the overall cost.
Once you’re covered, you’ll receive a certificate of insurance, the document that shows your indemnity limit and confirms you meet your professional body’s requirements or a client’s contract terms.
Keep every certificate you’ve ever held. If a claim arises about work from years ago, you’ll need proof you were covered at the time, not just now.
Your certificate typically shows:
Your business nameYour insurer’s namePolicy numberPolicy start and renewal datesYour retroactive date
How to get professional indemnity insurance
How to get professional indemnity insurance
Getting professional indemnity insurance takes four steps: tell us about your work, choose your indemnity limit, compare specialist insurers, then get covered with your certificate, often the same day.
Getting professional indemnity insurance takes four steps: tell us about your work, choose your indemnity limit, compare specialist insurers, then get covered with your certificate, often the same day.
Tell us about your work
Your profession, services and typical contracts.
Choose your indemnity limit
From £100,000 up to £10 million.
We compare specialist insurers
We search insurers who understand your profession.
Get covered and get your certificate
Receive your documents, usually the same day.
UK-based specialist advisersAccess to specialist insurersNo obligation, just expert helpTrusted by thousands of businesses across the UK
Trusted by thousands of businesses across the UK
From everyday business insurance to complex specialist cover, our customers trust Insurance Revolution to find the right protection and provide expert support when it matters.
From everyday business insurance to complex specialist cover, our customers trust Insurance Revolution to find the right protection and provide expert support when it matters.
Professional indemnity guides
Professional indemnity guides
Practical advice on claims-made cover, run-off and indemnity limits.
Practical advice on claims-made cover, run-off and indemnity limits.
What Counts as Professional Negligence? A Clear Breakdown
Professional negligence is one of the most common triggers for Professional Indemnity Insurance (PII) claims. Yet many businesses misunderstand what it actually includes. That gap can lead to costly mistakes, disputes, and uninsured risks.
Who Needs Professional Indemnity Insurance? From Consultants to Web Designers
Professionals offering advice, designs, or specialist services can be exposed to significant financial risk if a client alleges that their work has caused a loss. Whether the issue arises from a mistake, oversight, or perceived breach of contract, the potential for legal action can have serious consequences.
Professional Indemnity Insurance UK: What It Covers & Why You Might Need It
Professionals across many industries face the risk of client disputes, errors, or allegations of negligence. Whether offering advice, providing designs, or delivering consultancy, mistakes can lead to costly claims. Professional indemnity insurance can provide essential protection against the financial consequences of such events.
PI Insurance Extras: Adding Public, Employers’ Liability & Cyber Cover to Your PI Policy
Professional indemnity insurance can be an essential safeguard for businesses that provide consultancy, advice, or design services. However, many professionals operate in environments where risks extend beyond professional errors.
Professional indemnity insurance FAQs
Professional indemnity insurance FAQs
Straight answers on cover, cost, claims-made policies and run-off.
Straight answers on cover, cost, claims-made policies and run-off.
Professional indemnity insurance covers claims that your advice, design or professional service was negligent and caused a client financial loss. It pays your legal defence costs and any compensation awarded, whether or not the claim turns out to be justified.
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