Professional Indemnity Insurance

Professional indemnity insurance protects your business if a client claims your advice, services, or work caused them financial loss. It covers legal defence costs as well as any compensation payable.

Any business that provides advice, consultancy, design, or professional services should consider professional indemnity insurance. This includes consultants, accountants, architects, engineers, IT professionals, and agencies.

It is not legally required for most businesses, but many professions must hold it to meet regulatory requirements. It is also commonly required by clients before entering into contracts.

Cover typically includes negligence, errors or omissions, breach of professional duty, and sometimes defamation or loss of documents. Legal defence costs are usually included as standard.

The level of cover depends on your industry, contract requirements, and potential claim size. Many small businesses start with £250,000 to £1 million, while larger firms may require several million pounds in cover.

Costs vary based on your profession, turnover, and risk exposure. Lower-risk professions may pay from £100–£500 annually, while higher-risk or larger businesses can pay significantly more.

Yes, most policies include retroactive cover for past work, provided you have maintained continuous cover with no gaps between policies.

You should notify your insurer immediately. They will assess the situation, provide legal support, and handle negotiations or settlement if the claim is covered under your policy.