A professional indemnity policy can cover you for:
Professional negligence
Covers claims that your advice, design, or service was substandard, incorrect, or caused a financial loss.
Errors and omissions
Protection for accidental mistakes or missed steps in the delivery of your professional services.
Breach of contract
Covers claims arising from failure to deliver your services as promised, especially if your client believes you didn’t meet agreed standards or deadlines.
Legal defence costs
Pays for your legal expenses in defending against a claim, even if the case doesn’t go to court or if the claim turns out to be unfounded.
Defamation, libel, or slander
Some policies include cover if you’re accused of harming a client’s or third party’s reputation in the course of your work.
Breach of confidentiality
Covers you if you accidentally share confidential client information without authorisation.
Intellectual property infringement
Often included to protect you from accidental infringement of a third party’s copyright, trademark, or similar rights while delivering your services.
Frequently asked questions
1. What is professional indemnity insurance?
A Professional Indemnity (PI) policy protects individuals and businesses that provide professional advice or services against claims alleging mistakes, negligence, or breaches of duty that result in financial loss to a client. Professional indemnity insurance is essential for consultants, designers, architects, accountants, lawyers, tech developers, and anyone else offering expert advice or services.
2. Who should buy professional indemnity insurance?
This insurance is important for any business that provides a service, advice, or professional expertise, including:
- Consultants
- Accountants, auditors, and tax advisers
- Architects, engineers, and surveyors
- Marketing, media, and design professionals
- Solicitors and legal professionals (outside the SRA scheme)
- Tech firms, software developers, and digital agencies
- Education and training providers
Many professional bodies and regulators require PI insurance as part of their membership or licensing conditions.
3. What are the additional benefits of having professional indemnity insurance?
Professional indemnity insurance can help build client confidence by showing you’re a responsible professional who stands behind your work. Many clients, particularly in the public sector or corporate space, require this cover as part of contract terms. The policy covers legal defence costs, even if a claim is ultimately unfounded. It can also be tailored to your specific profession and risk profile, with flexible cover limits and wording. Additionally, many policies offer retroactive cover for past work and run-off protection for claims made after you’ve stopped trading.
4. What type of businesses are at risk?
Businesses that provide advice, create designs, manage data, or deliver professional services are at risk of claims, particularly in sectors where small mistakes can lead to significant client losses. High-risk industries include architecture and engineering, where design errors can cause expensive construction issues, and finance and accounting, where misadvice or missed deadlines may result in HMRC penalties. Technology providers face exposure from bugs or project delays that disrupt client operations, while marketing and media professionals risk claims over intellectual property disputes, misrepresentation, or underperformance. Legal and compliance consultants are also vulnerable, as poor advice can trigger regulatory penalties or business disruption.
