Professional Indemnity Insurance. Expert Cover.
One mistake in your professional work can cost a client thousands. Professional indemnity cover protects you from the financial impact of claims — and also protects your reputation.
Get in touchWhat is professional indemnity insurance?
Professional indemnity insurance covers you if a client or customer sues you for negligence or error in your professional advice or work. It pays legal costs and compensation claims, up to your policy limit.
Unlike general liability, PI is specifically designed for professional services: consultancy, financial advice, IT services, design, accountancy, law, architecture and similar roles.
PI insurance operates on a claims-made basis, which means your policy must be in place when the claim is made, not when the work was done. This is a critical difference from other insurance types.
What is covered
- Claims against you for professional negligence
- Legal defence costs
- Compensation awarded by courts or settlements
What is not covered
- Employment practices liability
Usually available as an add-on
- Third-party injury or property damage
Covered by public liability instead
- Work done before the policy start date
Requires a retroactive date and is usually included for some historical period
Who needs professional indemnity insurance?
Consultants and contractors
Business consultants, IT contractors, management consultants and interim professionals
Regulated professions
Accountants, financial advisers, solicitors, architects, surveyors and other regulated professionals
Creative professionals
Designers, copywriters, marketing agencies, photographers and other creative service providers
Technical service providers
Software developers, engineers, technical writers and other specialist service providers
How much does professional indemnity insurance cost?
£200 – £900 per year for consultants and freelancers; architects, solicitors and financial advisers may pay £500 – £3,000+
Your profession and the nature of advice given
high impactFinancial advisers, architects and solicitors face larger potential claim values than, say, social media consultants. Insurers price based on the maximum foreseeable loss a client could suffer from your work.
Fee income or contract value
high impactHigher fees usually mean larger project values and greater potential loss to a client. Premiums typically scale with the size of your business.
Level of cover required
medium impactSome professions require a minimum PI limit (e.g. £500,000 for RICS members). Others may need £1m, £2m or £5m depending on contract requirements. Higher limits cost more.
Claims history
medium impactA prior claim or notified circumstance will affect your renewal premium and may narrow your choice of insurers.
Retroactive cover date
low impactThe further back your policy's retroactive date, the more historical work it covers. Some insurers charge more for extended retroactive periods.
WHY CECIL
Built differently.
Protect against catastrophic claims
A professional error can result in claims worth tens of thousands. PI insurance covers legal costs and compensation so one mistake does not destroy your business.
Specialist cover for your profession
Software developers, architects, consultants and accountants all face different risk profiles. Your cover is tailored to your specific professional practice.
Understand run-off cover and retroactive dates
We explain how claims-made cover works and why run-off cover matters when you stop trading. Many professionals get this wrong.
Compare cover limits and costs
Your enquiry goes to specialist brokers who understand professional risks. You get multiple options to compare, not a single quote.
Real claims: what professional indemnity insurance covers
An IT consultant delivers a project that causes a client's system to go offline for three days
The client sued for lost revenue. The PI policy covered the legal defence and negotiated settlement
£47,000 total — £35,000 settlement and £12,000 legal fees
An accountant makes an error in a client's tax return leading to an HMRC penalty
The policy covered the cost of rectifying the error and compensating the client for the penalty
£8,500 total claim
A marketing agency uses a client's trademarked imagery without authorisation in a campaign
The PI policy covered the resulting intellectual property infringement claim
£15,000 settlement
Common questions about professional indemnity insurance
What does professional indemnity insurance cover?
Professional indemnity insurance covers claims made against you by clients alleging that your professional advice or work caused them financial loss through negligence, error or omission. It covers legal defence costs and compensation awards.
How much does professional indemnity insurance cost?
Cost varies widely based on your profession, fee income, and whether you are in a regulated profession. As a rough guide, freelance consultants might pay £200–£500 per year, while architects, accountants or financial advisers might pay £500–£2,000+ per year.
Who needs professional indemnity insurance?
Any professional service provider who gives advice or delivers professional services to clients should have PI cover. Some professions, such as financial advisers, architects and surveyors, are required by law to hold it.
What is the difference between professional indemnity and public liability?
Professional indemnity covers claims from clients alleging your professional work caused them loss. Public liability covers injury or damage to members of the public. A consultant might need both if they meet the public in person.
How much professional indemnity insurance do I need?
This depends on your profession, your clients' contract requirements and the potential loss you could cause. Many professional bodies specify a minimum — check yours. General market practice for consultants typically starts at £250,000 to £500,000, though individual requirements vary.
What is run-off cover and do I need it?
Run-off cover extends your PI policy after you stop trading. Because PI works on a claims-made basis, you remain exposed to past work even after you close. Run-off cover is typically arranged for 2–6 years and is often required by regulatory bodies.
Does PI insurance cover data protection breaches?
It depends on the policy. Some PI policies include limited data protection cover; others exclude it entirely. A separate cyber liability policy typically provides more comprehensive protection for data breaches.
Do I need PI insurance if I am a sole trader?
Yes, if you provide professional services or advice. As a sole trader you face unlimited personal liability, making cover important regardless of business structure.
What is the difference between PI and directors and officers insurance?
Professional indemnity covers claims arising from your professional services. Directors and officers insurance covers claims against company directors for decisions made in their managerial capacity. They address different exposures.
What does claims-made basis mean?
Professional indemnity insurance operates on a claims-made basis. This means your policy must be active when the claim is made, not just when the work was done. If you cancel your policy, you lose protection for all past work unless you arrange run-off cover.
Industries that need this cover
Professional Indemnity Insurance is commonly required across these sectors.
Interested in Professional Indemnity Insurance?
We will be in contact when Cecil launches.