Professional indemnity insurance for UK businesses
DigiCare is an independent, FCA-regulated broker. We compare professional indemnity (PI) cover from a panel of UK insurers and match the exact limit your contract or professional body requires, so you can get on with the work.
Reviewed by the DigiCare broking team · Authorised & regulated by the FCA · Last reviewed May 2026
- Authorised and regulated by the FCA
- Independent broker, multiple UK insurers
- Cover from £100,000 to £5m and above
- Tailored to your profession and required limit
What is professional indemnity insurance?
Professional indemnity insurance (PI or PII) covers the legal costs and compensation you may have to pay if a client claims your professional advice, service or work caused them financial loss. It pays the legal defence costs and any damages, up to your cover limit.
This is not the same as the "indemnity insurance" used in conveyancing. Property or deed-of-indemnity insurance covers legal defects on a property, such as chancel repair liability or missing building regulations. Professional indemnity is business cover for professional negligence, the financial harm your own advice or work might cause a client.
In the United States the same product is called errors and omissions insurance (E&O), so a US client or contract may ask for "E&O cover" when they mean professional indemnity. The trigger for a claim is professional negligence: a mistake, oversight or bad advice that leaves a client worse off financially. Even a defensible claim costs money to fight, and PI covers that defence as well as any settlement.
What professional indemnity insurance covers (and what it does not)
A standard UK PI policy pays your legal defence costs and any compensation a client is awarded, up to your chosen cover limit. Defence costs alone can run into thousands even when a claim fails, which is why the cover matters as much for being accused as for being at fault. The list below reflects what UK insurers and brokers commonly include and exclude. Cover wording varies between insurers, so always read your own policy schedule before you rely on it.
What's covered
- Professional negligence: a mistake or bad advice that causes a client financial loss
- Errors and omissions in your professional work
- Loss of, or damage to, client documents and data (physical or digital)
- Unintentional intellectual property infringement, such as copyright in client work
- Defamation, libel or slander arising from your work
- Unintentional breach of confidentiality
- Legal defence costs
- Compensation or damages awarded to the client
What's not covered
- Deliberate, dishonest or reckless acts
- Bodily injury or damage to third-party property: that is public liability insurance, not PI
- Claims notified after the policy lapses, unless you have run-off cover
- Work carried out before your policy's retroactive date
- Cyber-attacks and fines or penalties (these need separate cover)
Claims-made basis: PI is written on a claims-made basis. That means a claim is covered if it is made against you while the policy is live, for work you did after the retroactive date, even if the mistake happened years earlier. Tell your insurer as soon as you know of a circumstance that could lead to a claim, because late notification can void the cover.
Who needs professional indemnity insurance in the UK?
Professional indemnity insurance is not a general legal requirement in the UK. But it is mandatory for several regulated professions, each under its own regulator's rules, and it is often a contractual condition before a client or public-sector tender will engage you.
Even if no regulator covers your trade, many clients, frameworks and public-sector tenders make PI a condition of the contract, commonly £1m or £2m before they will sign. Consultants and IT contractors most often buy PI to win a specific piece of work, and online marketplaces increasingly ask freelancers for proof of cover before listing them. Regulated immigration advisers must also hold PI as a condition of practice. If you are reviewing all your cover at once, see our business insurance options.
How much professional indemnity cover do I need?
Most UK businesses choose £1m to £2m of professional indemnity cover, and £5m or more for larger contracts. Always check the minimum your professional body or client contract requires before you buy.
- 1
£100,000 to £500,000
Lower-risk sole traders and freelancers, or where a small client contract sets the bar
- 2
£1m to £2m
The most common choice for UK SMEs, consultants and many regulated professions
- 3
£5m and above
Larger contracts, public-sector frameworks, and higher-risk advisory work
Regulator minimums: Some regulators set the floor for you. For solicitors, the SRA Minimum Terms and Conditions require at least £2m per claim, rising to £3m for incorporated practices and LLPs. ICAEW accountants in public practice must hold at least 2.5 times gross fee income, with a £250,000 floor (rules updated 1 September 2024). Check your own body's current terms before you renew.
Aggregate vs any-one-claim: Watch how the limit applies. An "any-one-claim" limit resets for each separate claim in the policy year; an "aggregate" limit is the most the policy will pay in total across all claims that year. For regulated work, your professional body may specify which basis is acceptable.
How much does professional indemnity insurance cost in the UK?
Professional indemnity insurance for a low-risk sole trader on a modest limit typically runs from around £8 to £11 a month, and rises with your profession's risk, turnover and cover limit. There is no single price: the bands below are typical monthly ranges from UK insurers and brokers, so the surest figure is your own quote.
Photographers / videographers
lower-risk service
Monthly
£8 to £13
Annual
£91 to £159
Graphic designers
lower-risk creative
Monthly
£9 to £20
Annual
£109 to £241
Marketing / advertising
medium-risk advice
Monthly
£9 to £37
Annual
£109 to £448
Software / IT services
code and systems advice
Monthly
£10 to £68
Annual
£122 to £818
Management consultants
strategic advice
Monthly
£11 to £47
Annual
£135 to £560
Recruitment consultants
placement advice
Monthly
£12 to £79
Annual
£143 to £950
What drives your premium
- Your profession and the risk of the advice or work you do
- The cover limit you choose (higher limits cost more)
- Your annual turnover or fee income
- Your claims history
- The excess you agree to carry on each claim
Insurance Premium Tax applies to professional indemnity premiums at the standard 12% rate, added on top of the figures above. PI premiums are normally a tax-deductible business expense (HMRC BIM45515).
Professional indemnity insurance by profession
The risk that drives a PI claim looks different in every line of work. Below is the specific exposure each profession insures against, plus the regulator that makes cover mandatory where one applies. We are building a dedicated guide for each, so tell us your trade and we will match the cover and limit it needs.
Strategy or advice that a client says cost them money. Not regulated, but PI is a near-universal contract condition.
Management consultants
Code defects, project overruns and intellectual property infringement in client systems. Client contracts usually require £1m to £2m.
IT contractors / IT consultants
Tax errors, missed deadlines and negligent financial advice. Mandatory for members in public practice.
Accountants
ICAEWDesign faults and structural-defect claims, including fire-safety and cladding exposure. Mandatory "adequate and appropriate" cover.
Architects
ARBMissed limitation dates, conveyancing errors and negligent advice. Mandatory under SRA Minimum Terms.
Solicitors
SRAValuation errors and survey omissions. Mandatory claims-made cover via a RICS-listed insurer.
Surveyors
RICSDesign or calculation errors that cause loss or rework. Often a contract requirement on larger projects.
Engineers
Claims about advice, duty of care or confidentiality. Commonly required by membership bodies and platforms.
Counsellors / therapists
Professional indemnity vs public liability insurance
Professional indemnity covers financial loss caused by your advice or work. Public liability covers physical injury or property damage you cause to a third party. Employers' liability covers staff who are injured or fall ill through work. Many businesses need more than one, and only employers' liability is compulsory.
What it covers
Professional indemnity
Financial loss from negligent advice, service or work
Public liability
Third-party bodily injury or property damage
Employers' liability
Injury or illness suffered by your employees
Who needs it
Professional indemnity
Anyone giving advice or professional services; mandatory for many regulated professions
Public liability
Businesses with customer or public contact
Employers' liability
Any business that employs staff
Legally required?
Professional indemnity
No (except specific regulated professions)
Public liability
No
Employers' liability
Yes. Minimum £5m, Employers' Liability (Compulsory Insurance) Act 1969
How claims work: claims-made policies and run-off cover
PI is a claims-made policy. You are covered for claims made against you while the policy is live, for work done after your retroactive date. If you stop trading or retire, claims can still arrive for past work, so you either keep a policy in force or buy run-off cover to insure that tail. For some regulated professions, run-off is mandatory on closure: solicitors, for example, must carry six years' run-off under the SRA Minimum Terms. This mirrors the six-year limitation period for most negligence claims (Limitation Act 1980).
- 1
Retroactive date
The earliest date of work your policy will cover
- 2
Policy period
Claims made now, for work after that date, are covered
- 3
Run-off tail
Keeps you covered for past work after you stop trading
- 1
Retroactive date
The earliest date of work your policy will cover
- 2
Policy period
Claims made now, for work after that date, are covered
- 3
Run-off tail
Keeps you covered for past work after you stop trading
Chapter VI
Professional indemnity insurance FAQs
- What's the difference between professional indemnity and "indemnity insurance"?
- The names look alike, so they are easy to mix up, but they solve different problems. Professional indemnity steps in when your advice or work causes a client a financial loss. Plain "indemnity insurance" usually means the property or deed-of-indemnity cover bought during a house purchase, for risks like chancel repair liability or missing building-regulations sign-off. If your business gives advice or delivers professional work, professional indemnity is the one you need. For a plain-English walkthrough, read our guide to what professional indemnity insurance is.
- Is professional indemnity insurance a legal requirement in the UK?
- Not generally. It is not compulsory for every business, but it is mandatory for several regulated professions, including solicitors (SRA), accountants (ICAEW), architects (ARB), surveyors (RICS), many healthcare roles (HCPC) and FCA-authorised firms. It is also often a condition of client contracts and public-sector tenders.
- How much professional indemnity cover do I need?
- Most UK businesses choose £1m to £2m, and £5m or more for larger contracts. Check the minimum your professional body sets and read any client contract, which may specify the limit you must hold before they engage you.
- Is professional indemnity the same as errors and omissions (E&O)?
- They are one cover with two names. "Errors and omissions" is the term used in the United States, while UK insurers and contracts say "professional indemnity". So if an American client or a US-style contract asks you for E&O cover, a UK professional indemnity policy is what meets the requirement.
- Do sole traders need professional indemnity insurance?
- Not unless you work in a regulated profession that requires it. But if you give advice or professional services, it is strongly advised, and clients or marketplaces often ask for proof of cover before they hire you.
- What is run-off cover and do I need it?
- Run-off cover insures claims that arrive after you stop trading or retire, because PI is written on a claims-made basis. It is important for anyone closing a practice and is mandatory for some regulated professions, such as solicitors who must hold six years' run-off.
- Does professional indemnity cover injury or property damage?
- No. Injury to people or damage to their property is covered by public liability insurance, not professional indemnity. PI covers financial loss caused by your advice or work only.
- Can I cancel a professional indemnity policy after I buy it?
- Yes. UK general insurance comes with a 14-day cooling-off period under the FCA's rules (ICOBS 7), which starts from the later of your policy start date or the day you receive your documents. Cancel within that window and you get a refund of premium for the unused time, less a fair charge for any cover already provided. Your policy documents set out exactly how to cancel.
Get a professional indemnity insurance quote
Tell us your profession and the cover limit you need. As an independent, FCA-regulated broker, DigiCare compares professional indemnity cover from a panel of UK insurers and matches the exact limit your contract or professional body requires.
DigiCare is authorised and regulated by the Financial Conduct Authority. FRN shown in the footer.