Professional indemnity insurance provides essential financial protection if your business offers professional advice for a fee.

It covers claims made against you by clients who have lost money because of your work.

You may be required to have professional indemnity insurance if you are part of a trade body or subject to industry regulation. And the right policy can cover expensive claims that would otherwise cost your business thousands in legal fees.

What does it cover?

Professional indemnity insurance can cover claims made against you for:

  • Professional negligence, e.g. you make a mistake on work for a client

  • Lost documents or data

  • Accidental breach of copyright or confidentiality

  • Defamation and libel

  • Loss of goods or money (for which you are responsible)

This comparison includes insurers that offer varying limits of indemnity, which is the maximum the policy will pay for a claim.

You can take out stand-alone cover, or combine it with public and employers' liability insurance. This covers you if your staff are injured, ill or die at work.

Get as many quotes online as possible to find the best policy for your business. If you are unsure what cover you need, speak to a broker who can get quotes and advise you.

Do you need it?

If you offer your knowledge, skills or advice to paying customers, you should think about taking out a professional indemnity policy. The following professions need to have cover:

  • Solicitors

  • Accountants

  • Architects

  • Chartered surveyors

  • Financial advisers

  • Healthcare professionals

You may also want to take out cover if you work in:

  • PR or advertising

  • Consultancy

  • Graphic design

  • Journalism

Professional indemnity insurance FAQs

Q

How much does professional indemnity insurance cost?

A

It depends on the type of business you run, your annual turnover, and the limit of indemnity you need. Compare quotes to get the best price.

Q

Will I get a certificate of insurance when I take out cover?

A

Yes, most insurers send a copy by email and by post. You can then forward your electronic copy to potential clients as proof of insurance.

Q

Do I need professional indemnity cover if I am self employed?

A

Yes, even if you do not employ anyone or you work from home, you need professional indemnity to cover any advice you give to clients.

Q

How many times can I claim on my policy?

A

Most policies let you claim as many times as you need to, as long as you do not go over the maximum indemnity limit (e.g. 1 million).

Q

Do I have to pay an excess if I claim?

A

Yes, you have to pay to claim on a professional indemnity policy. This is usually around 250 per claim.