If you provide professional services that you can be held accountable for or you work in a profession that requires you to have cover from either a trade or membership body, then you should have professional indemnity insurance.
This will cover the costs of defending your business from a customer claim which can include your solicitor fees, investigation costs, court costs and any resulting compensation claims.
Below we have explored what some of the leading professional indemnity insurance providers can offer.
The table below gives a quick price comparison of the top UK providers for professional indemnity.
|Company||Minimum cover||Maximum cover|
|Aviva||Not stated||Not stated|
|AIG||Not stated||Not stated|
|RSA||Not stated||£10 million|
|AXA||Not stated||£5 million|
|Allianz||Not stated||£5 million|
|Ageas||Not stated||Not stated|
|QBE||Not stated||Not stated|
|Lloyds Banking Group||Not stated||Not stated|
|Liberty Mutual||Not stated||£15 million|
|HDI||EUR 10,000||EUR 20 million|
|Hiscox||Not stated||£10 million|
|AmTrust Europe||Not stated||£5 million|
|Markel direct||Not stated||£5 million|
|Travelers||Not stated||Not stated|
|CNA Hardy||Not stated||Not stated|
|Sompo Internation||Not stated||£15 million|
|Glemham Insurance||Not stated||Not stated|
* The facts and figures included here come from each company’s website and were accurate at the time of writing but may have since changed. Also, please keep in mind these may not be apples to apples comparisons as each provider offers different solutions. This guide should be used as a starting off point for more research on your part.
Below we profile each of the companies’ services and features in a bit more detail.
Some of the features and benefits of Aviva’s professional indemnity.
- Designed for businesses whose income is generated from charging a fee for their services
- Also suitable for construction companies for design and build contracts
- Offer three levels of cover which cater for different sizes of businesses
- Is suitable for international businesses
- Tailored products for the main professional services
- Provides cover on a broad basis
- They understand the risks you might face
- Dedicated claims managers
- Offers a range of complementary products
- Available only through a broker
Aviva provides professional indemnity insurance that is designed for businesses who deliver professional services and generate their income from charging a fee for these services. They also provide cover for construction businesses that deliver design and build contracts.
Aviva’s professional indemnity insurance is available to businesses of all sizes and can be used to cover international businesses. Their cover is subject to suitability checks which can be done by an independent broker as it can only be purchased through a broker. Their cover is tailored to the main professional services and offers cover on a broad basis.
Some of the features and benefits of AIG’s professional indemnity.
- Professional liability to protect individuals and businesses
- They take an individual approach to protecting businesses
- Peace of mind to focus on the job
- Insure a broad range of professional services
- Policies designed for particular professions
- Cater for sole traders to large businesses
- Specialist claims team
- Proven track record in defending against allegations
- Includes civil liability cover
- Provides cover for claims related to work done in the past
AIG provides professional indemnity insurance that is suited to a broad range of professional services and caters for sole traders through to larger businesses. They take an individual approach to their policies to ensure that businesses are effectively protected.
AIG’s professional indemnity insurance is designed to give businesses and individual professionals peace of mind so that they can focus on the job in hand. They have a proven track record in defending professionals against allegations brought against them and they have a specialist claims team to support you. Their cover is designed to protect businesses against current claims regardless of when the work was completed.
Some of the features and benefits of RSA’s professional indemnity.
- Designed for businesses that provide professional advice and design
- Provides cover for up to £10 million
- Suitable to individuals and businesses
- Covers civil liabilities
- Includes breach of professional duty, dishonest acts, libel and slander
- Also includes intellectual property rights and damage to documents
- Offers a range of additional cover
- Provides cover to a wide range of designers, consultants and advisory professionals
- Does not cover solicitors, financial businesses and building design businesses
- Can only be purchased through an intermediary
RSA provides professional indemnity insurance that delivers cover up to £10 million. Their professional indemnity insurance is suitable for sole traders and businesses. They insure a wide range of business professions that include those that provide design services, consultancy businesses and advisory services.
RSA’s professional indemnity provides cover for civil liabilities cover that includes breach of professional duty, dishonest acts, libel and slander, liability for damage to documents, infringement of intellectual property rights, as well as adjudication and arbitration costs and payouts. RSA does not provide their policies direct and you would need to contact an intermediary to purchase cover.
Some of the features and benefits of AXA’s professional indemnity.
- Professional indemnity cover up to £5 million
- Cover from as little as £47 a year
- Includes defence costs including solicitor’s fees and counsel
- Will pay compensation bills
- Provide specialist policies for a range of professions
- Tailored policies
- A range of optional extras
- Includes breaches of data protection, copyright, confidentiality and duty
- Can incorporate public and employers’ liability
- Can choose to cover previous work
AXA provides professional indemnity insurance direct to businesses up to the value of £5 million with cover as low as £47 per year. Their policies provide cover for allegations of negligence or breach of data protection, copyright, confidentiality and duty. The policy will cover defence costs including solicitor’s fees, counsel and pay compensation bills.
AXA tailor their professional indemnity insurance to their customer’s needs and provides a range of optional extras. They provide policies for a range of profession types as well as specialist policies for a variety of professions that cater specifically for their needs. The professional indemnity insurance can be combined with public and employer’s liability insurance.
Some of the features and benefits of Allianz’s professional indemnity.
- Professional indemnity design for businesses with a turnover up to £7.5 million
- Caters for businesses that offer advice, design, skills or knowledge
- Covers against legal liability to compensate third parties
- Includes injury, loss or damage resulting from a breach in duty
- Covers breach of copyright, confidentiality, defamation and other civil liability
- Also covers fraud, dishonesty, lost documents, joint ventures and court attendance
- Indemnity limit of £5 million
- Experienced underwriting and claims service
- Dedicated claims team to minimise disruption to your business
- Compliant with professional bodies’ regulatory requirements
Allianz provides professional indemnity insurance that is designed for professions that offer advice, design, skills or knowledge in their professional capacity. They cover businesses that have an annual turnover up to £7.5 million and their cover will provide indemnity protection of up to £5 million.
Allianz’s professional indemnity insurance covers policyholders against legal liability that results in compensation claims from third parties. This cover includes breaches of copyright, confidentiality, defamation and other civil liabilities that have caused injury, loss or damage. They are experienced providers that have dedicated claim teams that will help you to minimise the disruption to your business.
Some of the features and benefits of Ageas’ professional indemnity.
- Protection for when things go wrong
- Covers breach of professional duty
- Can include yourself, your employees and contractors
- Legal expenses
- Offers peace of mind as well as protection
- Optional extras available
- Can include employer’s liability
- Also can add public and product liability
- Can include portable business equipment
- Available through a broker
Ageas offers professional indemnity insurance to help protect businesses against the event of anything going wrong such as a breach of professional duty that can cover individuals, employees and any contractors that are working on your behalf. It offers professionals both protection and peace of mind.
Ageas’ professional indemnity insurance covers your legal expenses against a claim of a breach of professional duty. It also can offer additional cover including employer’s liability, public liability and product liability to further protect you and your business against any claims. Their professional indemnity insurance is only available through a broker.
Some of the features and benefits of QBE’s professional indemnity.
- Support in the event of a claim
- Covers for losses and defence costs
- Confidence to do your job
- Tailored cover
- Flexible approach to policies
- Has their own in-house risk management team
- Support to help you reduce your risks
- Can help you benchmark yourself against your competitors
- Cater for small to large global businesses
- Claim to be market leaders in professional indemnity
QBE provides professional indemnity insurance to a wide variety of businesses and to businesses of all sizes from small to large multi-national businesses. They offer specialist expertise in legal, construction, technology, emerging professions and traditional professions.
QBE’s professional indemnity insurance provides cover that gives professionals the confidence to do their job with the knowledge that they have a comprehensive policy that will cover them for any losses and defence costs. They provide tailored cover that has a flexible approach to create policies that suit individual business needs. They have their own in-house risk management team and they can provide a benchmarking service and industry insight.
8. Lloyds Banking Group
Some of the features and benefits of Lloyds Banking Group’s professional indemnity.
- Protection from compensation payments
- Also covers the cost of defence
- Cover from as little as £112
- Choice of indemnity levels
- Competitive quotes
- Quick and simple cover
- Cover that provides security
- Offers cover that meets mandatory and membership bodies
- Provides combined cover
- Compares covers from a panel of insurers
Lloyds Banking Group provides professional indemnity insurance that is delivered through a panel of insurers who provide competitive quotes for a wide variety of professions. Their cover offers protection from potential compensation claims and any payments. It will pay for the defence costs and any resulting payments.
Lloyds Banking Group offers a range of professional indemnity insurance that has a variety of cover levels. They claim that they offer quick and simple service to get the policy set up. They provide cover that will help business to meet their mandatory requirements and will also satisfy membership bodies and trade associations.
9. Liberty Mutual
Some of the features and benefits of Liberty Mutual’s professional indemnity.
- Offer a suite of professional indemnity products
- Cater to the specific needs of each business
- Provides specialist cover
- Offers cover to a wide variety of businesses
- Provides cover up to £15 million
- Caters for businesses of all sizes
- Experienced underwriters
- Claims to offer high levels of service
- International provider
- Purchase direct or through a broker
Liberty Mutual provides a suite of professional indemnity insurance products that cater to a variety of business needs including offering some specialist indemnity products tailored to specific professions and markets. They have teams of experienced underwriters that can provide cover up to £15 million.
Liberty Mutual provides cover to a wide range of businesses which include designers, construction professions, valuers, advisers, brokers, consultants, surveyors, engineers and agents. They aim to deliver high standards of service by tailoring their products and providing good customer service. As an international provider, they can offer multinational cover to businesses of all sizes.
Some of the features and benefits of HDI’s professional indemnity.
- Cover for financial losses incurred as a result of a claim
- Includes clients and third parties
- Covers professional errors by you or an employee
- Offer sector specific insight
- Will help you find the right cover for your business
- Specific products for a number of sectors including financial, legal, technical
- Available to a wide range of sectors
- Suited to professions that require compulsory cover
- Provides cover from €10,000-25 million
- Offers both primary and excess lines
HDI is an insurance provider who offers professional indemnity insurance to a wide range of businesses who require cover for professional errors that are made by you or people that you are responsible for. They provide cover for primary and excess lines with protection from €10,000 to €25 million.
HDI will work with you to ensure that you find the right cover for your business and can provide cover that meets your industry’s minimum compulsory requirements. Their cover will assist you in the event of a claim and will cover any financial losses. They provide specific cover for financial, legal, technical, real estate, consultancy and IT professions.
Some of the features and benefits of Hiscox’s professional indemnity.
- Industry-specific policies
- Policies tailored to your professional needs
- Covers professions that provide advice and services that can be challenged
- Includes negligence or breach of duty, infringement of intellectual rights and some civil liability
- Covers defamation, confidentiality, and advertising claims
- Provides protection against dishonesty
- Covers the costs for court appearances and defence
- Will cover you, your staff, sub-contractors and outsourcers
- Cover up to £10 million
- Policies starting from £100 per year
Hiscox’s professional indemnity insurance provides comprehensive cover which includes a wide variety of claims as a result of negligence, breach of duty or infringement. The policy will cover you, your employees and any sub-contractors or outsourcers up to the value of £10 million with cover starting from as little as £100 per year.
Hiscox provides professional indemnity insurance to a wide variety of businesses such as consultants, technology businesses and accountants. Their cover is designed to meet the requirements of trade associations and membership organisations. Their cover is available to professions such as IT and management consultants, teaching and training providers, marketing, translators and photographers.
12. AmTrust Europe
Some of the features and benefits of AmTrust Europe’s professional indemnity.
- Protection for claims being brought against you
- Covers professional services that you provide
- Offers both primary and excess capacity cover
- A variety of cover up to £5 million
- Choice of aggregate or any one claim
- ‘Claim made’ cover
- Covers a wide range of professions including accountants, architects, engineers and construction professionals
- Will assess all risks individually to provide effective cover
- Caters for small to medium-sized businesses
- Covers UK and international businesses
AmTrust Europe provides protection for professional services businesses that are held accountable for the advice they provide. This includes professions such as accountants, architects, engineers, design and construction professionals, and insurance brokers amongst many more. They specialise in providing cover to small to medium-sized businesses in the UK and abroad.
AmTrust Europe’s professional indemnity insurance offers a wide variety of cover with policies that offer a choice of primary and excess, aggregate, any one claim or ‘claim made’ and their cover is available up to £5 million. They take a personalised approach by assessing all risks individually to provide effective cover.
13. Markel Direct
Some of the features and benefits of Markel direct’s professional indemnity.
- Essential business insurance to protect you against claims
- Covers legal costs and compensation payments
- Suited to contractors, consultants and self-employed professionals
- Provides comprehensive protection
- Peace of mind cover
- Offers policies to professions that require minimum cover
- Policies are fast and easy to set up
- No hidden fees or cancellation charges
- 24 legal advice line
- Specialist cover from £7 per month
Markel direct offers professional indemnity insurance that they state is essential for all business that can be held accountable for their actions as it will provide peace of mind that you are covered against any claims from customers. It will provide both legal costs and compensation payments.
Markel direct’s professional indemnity insurance is suited to businesses that provide business and IT consultancy services, technical services, engineering, creative and marketing professions, teachers and trainers, as well as accountant,s surveyors and architects. They can provide cover from as little as £7 per month with no hidden fees or cancellation costs.
Some of the features and benefits of Travelers’ professional indemnity.
- Industry-specific professional indemnity insurance
- Designs their insurance to meet professional bodies and regulators standards
- They have got to know each sector before offering a sector-specific product
- Offers insight and expertise
- Helps to create proactive protection
- Offers a team to give support and advice
- Will cover the cost of investigating and defending a claim
- Also covers the cost of any payments
- Give you access to experts in claim handling
- Will also help you to defend your reputation
Traveler provides professional indemnity insurance that helps to protect you against claims for negligent advice, design or other professional work that can result in a financial loss. Their cover includes defamation, dishonesty, breaches and many other claims. Their policies are sector specific and have been tailored to specifically meet the needs of each sector.
Traveler’s professional indemnity insurance will cover the cost of investigating any claims and the defence costs as well as compensation claims that arise from them. They will give you access to experts that help you defend yourself and your reputation.
15. CNA Hardy
Some of the features and benefits of CNA Hardy’s professional indemnity.
- Protection against claims
- Covers media and miscellaneous professions
- Also includes design and build contractors
- Provides cover for regulated professions
- Offer industry-specific solutions
- Cover includes defence and investigation of claims
- Also includes payment of compensation
- Professions include consultants, designers, engineers, assessors and advisors
- Also covers charities
- Cover small to medium businesses and large UK companies
CNA Hardy provides a range of business insurance which includes business protection products including professional indemnity insurance. They provide sector specific products for industries such as construction, energy, financial, healthcare, manufacturing, technology and transport.
CNA Hardy’s professional indemnity insurance provides businesses with cover to defend them against claims and to investigate them and pay any resulting compensation payments. It provides cover to businesses that are small to medium and larger businesses that are based in the UK. Their policies have also been designed and created so that they meet the minimum requirements for regulated professions which also includes charities.
16. Sompo International
Some of the features and benefits of Sompo International’s professional indemnity.
- Cover for a broad range of professional services
- Bespoke and tailored solutions
- Flexible approach to underwriting
- Cover up to £15 million
- Primary and excess considered
- Covers civil liabilities
- Skilled and knowledgeable underwriting team
- Dedicated professional lines claims team
- Claim to be market leading at claims handling
- International operations
Sompo International provides professional indemnity insurance for a wide range of professional services such as designers, engineers, accountants, architects, brokers, IT, media, lawyers and surveyors. They will provide cover up to the value of £15 million through their flexible approach to underwriting which can create bespoke and tailored products to meet all business needs.
Sompo International provides professional indemnity insurance that protects businesses against claims from customers for the service they have received. They consider primary and excess across all product lines and provide cover for civil liabilities. They claim to have market-leading claims handling service and a dedicated professional lines claim team.
17. Glemham Insurance
Some of the features and benefits of Glemham Insurance’s professional indemnity.
- Protection against claims from customers
- Underwrite most professions
- Provide specialist products for sectors to meet their needs
- Cover for defence and court costs
- Offers A+ rated cover
- Cover includes breaches, negligence and defamation
- Insurance for professions like engineers, consultants, designers and construction
- Does not cover solicitors, insurance, mortgage brokers or IFAs
- Combine with public, product and employer’s liability
- Purchase through a broker or financial advisor
Glemham Insurance offers professional indemnity insurance that is available to a wide range of professions including accountants, architects, construction, engineers, consultants, technology, marketing, manufacturers and surveyors. However, they do underwrite most traditional professions and will consider many untraditional professions.
Glemham Insurance’s professional indemnity insurance offers businesses protection and peace of mind against customer claims for compensation resulting from the services provided. It covers a wide range of claims including civil liabilities, breaches, negligence and defamation. They also provide a range of other complementary insurance products which can be combined in a single plan which include public, product and employer’s liability.
Financial Disclosure: We may be paid a fee if you purchase insurance via the Simply Business link at the top of this page.
What Is Professional Indemnity Insurance?
Professional indemnity insurance serves as a type of cover that has been designed for firms and individuals where errors may be made during the everyday events of their business. The policy will typically cover any of the following:
– Errors or omissions
– A breach of professional duty
– A breach of civil liability
– Professional negligence
As a cover, it helps professionals work without worrying that they will be taken to court by a client or third party over issues with their work. Of course, these problems could still occur, but insurance cover can help provide financial protection.
How Does A Professional Indemnity Claim Work?
When making a claim against this insurance, it’s often triggered due to another party or individual making a claim of professional negligence or any other issues protected within the professional indemnity insurance cover.
Typically, the person claiming the negligence will have six years from the date of the breach to attempt a claim. Your legal costs will be covered; the PI insurance also covers any compensation claims.
Runoff insurance is another one that’s offered, and this is where claims would still be covered if your business were to cease operation.
Is It Illegal To Not Have Professional Indemnity Insurance?
There are plenty of insurances out there that are not a legal requirement. Whilst professional indemnity cover is not a legal requirement, most professionals and businesses will stress having professional indemnity insurance.
It’s away of providing that extra cover that you might need in a situation that’s come completely left field.
Whether it holds true or not, being sued or having a claim made against you as a business can be severely damaging if it goes in the claimant’s favour.
What Happens If You Don’t Have Professional Indemnity Insurance?
Professionals or businesses within certain sectors will find professional indemnity insurance integral in protecting their organisation. This is due to some sectors suffering from certain disputes and disruptions on a regular basis.
The whole purpose of business insurance cover is to protect you financially, and the same goes for this type of insurance. Any negligence or malpractice claim could result in the loss of your business, depending on the claim amount made.
Why Is Professional Indemnity Insurance So Expensive?
Some business insurance options can be so expensive because of the rise in claim volumes. That’s why the professional indemnity insurance cost can often be high. PI insurance has become more expensive with the rise in claims and complex cases from these claims.
Despite this, it’s a cost that could save you money in legal fees and compensation payments. These financial costs can be significantly more expensive than the premiums you pay on this type of insurance.
It’s always a good idea to look at insurance providers across the market and compare the costs. That way, you’ll likely come across an affordable insurance provider for your business.
After all, a professional indemnity policy is something to consider for your company, whatever its size or reputation may be in the industry.
What Is The Difference Between Public Liability And Professional Indemnity Insurance?
There’s a difference between professional liability insurance and indemnity insurance. Public liability is tailored for public members to make claims for illness, damage or injury caused.
Professional indemnity is different because it covers claims made by clients who’ve experienced professional negligence or mistakes caused in a professional capacity. Both insurances are something you’ll likely require to provide professional services of any kind.
The more insurance coverage you have, the more peace of mind you’ll likely have. Insurance can be costly but having no insurance is a risk that’s not worth taking in this day and age.
Does PI Cover Negligence?
PI does cover negligence as part of its policy. What does negligence mean when parties want to make a claim? Negligence is when a professional fails to carry out its responsibilities to the expected standard or breaches a duty of care.
Examples of this negligence would be any of the following:
– Breach of confidentiality
– Failure to take relevant precautions
– Providing the wrong products, e.g. healthcare professionals offering the wrong medication
– Giving the individual or party the wrong advice that intentionally causes harm or damage
These are good to know for reference to any claims you would make as a business or avoid doing to ensure fewer scenarios occur where legal action could be taken against you.
However, you’ll need to check the specifics of the policy you choose to ensure it is sufficient to cover your needs. You’ll always need to check the details before making a claim, too.