Professional indemnity insurance

Every business is unique, and your professional indemnity (PI) insurance (also known as professional liability insurance) should protect you from the specific risks you face. Working with an experienced PI insurance broker ensures you get the protection you need to carry out your work with confidence.

Get in touch with a professional indemnity insurance expert

Our team of PI insurance experts are here to make sure you have the right cover in place. Call us or complete an online form and we’ll call you.

Why do you need professional indemnity insurance?

Suppose you have a client who alleges you’re responsible for causing them financial loss due to errors or omissions in the advice or services you have provided. Your PI insurance policy covers any legal costs and expenses involved in defending the claim as well as any payment of compensation claims.

For some professionals, PI insurance is a mandatory requirement of their regulatory bodies. Examples include accountants, architects, independent financial advisers (IFAs), solicitors and surveyors. For other professionals, having PI insurance in place may be part of a contractual obligation.

You may choose this cover because of the protection and security it provides if your advice or service fails to meet a client's expectations. Having PI insurance in place can also play a key role in securing new clients and reassuring your existing ones.

Our team of PI insurance experts can arrange insurance for a wide range of professionals, including:

Why choose Marsh Commercial for your professional indemnity insurance?

PI insurance isn’t one-size-fits all. We offer tailored advice for your business, along with the following benefits:

  • An in-house team of specialist claims handlers.
  • Free 24-hour legal and counselling advice helplines.
  • Free tax advice helpline for your business and on behalf of your clients.
  • Capped excess.

Policy exclusions and restrictions may exist based on your unique requirements.

What’s covered by professional indemnity insurance?

Professional indemnity insurance provides protection if your client claims a financial loss for:

  • Breach of a professional duty of care or unintentional breach of contract.
  • Unintentional breach of confidentiality or copyright.
  • Loss of documents or data.

Professional indemnity insurance coverage depends entirely on your policy, which should provide adequate cover for the services you offer and the risks you may face. For example, this could include:

  • Civil liability (such as damages and costs) for breach of duty.
  • Legal fees and expenses in defending a claim.
  • Helplines to help you manage risks.
  • Relevant regulatory body requirements.

It’s advisable to work with an experienced PI insurance broker to ensure you have the cover you need. Our team of PI experts in PI are here to help, and work with a wide range of insurers to obtain the best possible terms for you at a competitive price, based on your needs.

PI insurance for higher risk business activities

Our PI insurance experts have a wealth of knowledge and work closely with a wide range of insurers on your behalf. Speak to us if you’re planning to take on higher risk projects or business activities. We can help you find cover, explain any impact to your existing insurance, and provide advice on risk management.

PI insurance that meets the requirements of your professional body

It’s important that your professional indemnity insurance meets the requirements of your professional body, especially if it’s a mandatory requirement of membership. For example, the ICAEW and ICAS have made PI insurance compulsory for member accountants. Both require the cover to be obtained only from approved insurers and meets their minimum standards.

We’re the exclusive, appointed insurance broker for ICAEW members’ professional indemnity insurance. We’ve worked with the ICAEW for more than 15 years and manage many policies on behalf of members.

PI insurance is usually deemed mandatory by the professional bodies of accountants, architects, designers, surveyors, solicitors and independent financial advisers (IFAs).

No matter what your profession, we ensure the cover we arrange meets the requirements of your professional body and gives your business the protection it needs.

Other business insurance for professional services

We’re here to help you manage risk in your business and ensure you have the right protection in place. If we’re managing your PI insurance, why not ask us to quote the rest of your commercial insurance policies?

We can help you with:

  • Public liability insurance.
  • Employers liability insurance.
  • Cyber liability insurance.
  • Office insurance.
  • Management liability insurance.
  • Legal expenses cover.

Call 0330 8281391 or email the team to speak to us about your business insurance.

Buy professional indemnity insurance now 

Our team of PI insurance experts are here to make sure you have the right cover in place. Call us or complete our online form and we’ll call you.

Why work with a specialist PI insurance broker?

Professional indemnity insurance is a specialised area of insurance so it’s important to work with a broker that specialises in this field. The difference between a general insurance broker or online product and a specialist insurance broker like Marsh Commercial is that we can:

  • Use our expertise to ensure you are only paying for the cover you need.
  • Provide access to a wide range of insurers.
  • Ensure your cover meets the minimum requirements of your professional body.
  • Act on your behalf in the event of a claim, aiming to achieve the best possible outcome.

Professional indemnity insurance gives you the protection you need to support your clients with confidence. Should you face a claim for professional negligence, it can be a very time-consuming, expensive, and complicated process. The advice and expertise of an expert PI insurance broker can be pivotal in getting the claim dealt with efficiently and effectively.

Not sure what professional indemnity cover you need? 

Call us to discuss what kind of cover you need, our experts in PI are always happy to help. Alternatively, complete our online form and we’ll call you.

Professional indemnity insurance FAQs

If you're found responsible for causing financial loss to your client due to an error or omission in the services you have provided, professional indemnity (PI) cover protects against legal costs and expenses involved in defending a claim, as well as compensation payable.

This depends entirely on your policy, so you'll need to ensure it provides adequate cover for the advice and professional service you provide and the risks you may face. For example, this could include:

  • Civil liability (such as damages and costs) for breach of duty.
  • Legal fees and expenses in defending a claim.
  • Helplines to help you manage risks.
  • Relevant regulatory body requirements.

Not all PI insurance policies are the same, so it’s advisable you work with an experienced PI insurance broker to ensure you have the cover you need.

Here’s an example of how PI insurance could respond when faced with a claim.

A freelance architect was facing a claim for allegedly delivering inadequate work that resulted in the client experiencing a significant financial loss.

While every effort was made to ensure the project ran smoothly and without any errors, the project did run into difficulty. Fortunately, the architect had taken out a professional indemnity policy. This gave them peace of mind knowing any compensation payments that needed to be paid were covered, along with legal costs and associated expenses.

On further examination of the claim, it came to light that the issues experienced in the project weren't the sole responsibility and fault of the architect. The architect accepted some liability for the problems that arose. The case was resolved swiftly and for significantly less than the client had initially claimed.

A professional indemnity insurance policy responds if a client alleges you’ve caused them financial loss due to errors or omissions in the services you’ve provided. Your policy should cover the legal costs and expenses involved in defending a claim as well as compensation payable.

PI insurance is considered mandatory by some regulatory bodies. Examples include those associated with accountants, architects, surveyors, and independent financial advisers (IFAs). For other professionals, having PI insurance in place may be part of a contractual obligation.

Many choose this cover because of the protection and security it provides if their advice or service fails to meet a client's expectations. Having PI insurance in place can also play a key role in securing new clients and reassuring your existing ones.

The cost of PI insurance can differ, and it depends on different elements like the level of cover, number of employees, annual turnover and your particular business risks. Every business is different, and there isn't a one-size-fits-all PI insurance policy. We always advise working with a broker who specialises in arranging PI. You are legally required to have cover for compensation of at least £5 million, but most policies will offer cover for £10 million. Your premium cost is usually based on several factors: the nature of your business, how many people you employ (and/or the payroll cost) and any previous insurance claims. In larger organisations, or where several employees are based in one location, increased limits are recommended.

PI insurance is widely available through general insurance brokers and online insurance providers as well as specialist PI brokers. It's important to carefully select a provider that can meet your business needs. Some key considerations to keep in mind when choosing a provider include:

  • Does the provider understand your business?
  • Can the policy be tailored to suit your business? 
  • Does the provider have a good reputation and work with reputable insurers?
  • Does the provider offer the cover you need?
  • Does the provider offer a high standard of customer service, during and after the initial sale?
  • Will the provider help guide you through any future claims?
Yes, most business insurance including professional indemnity insurance is considered an essential cost and is tax deductible.