What professional indemnity covers
Professional indemnity (PI) insurance covers the cost of defending and settling claims that your advice, designs or services caused a client financial loss. For many professions it's mandatory; for others it's essential protection. The best policy matches your profession's risks and any regulatory requirements.
1. PI for regulated professions
Many regulated professions (financial advisers, solicitors, accountants, architects) must hold PI to set minimum levels. Best — and required — for these; the cover level is often set by your regulator or professional body.
2. PI for consultants and contractors
Consultants, IT contractors and freelancers are often required by clients to hold PI before working. Best for anyone providing professional services or advice to clients — frequently a contract condition.
3. PI for designers and creatives
Designers, marketers and creative professionals face claims over work that causes a client loss. Best for creative businesses whose output clients rely on commercially.
4. Choosing the right cover level
Cover limits range widely; the right level reflects your contract values, client requirements and regulatory minimums. Best set realistically — too little leaves you exposed, and some contracts specify a minimum.
How much cover do you need?
- Check your regulator's or professional body's minimum
- Check client contract requirements
- Consider the potential size of a claim against you
- Factor in defence costs, not just settlements
How to find the best PI cover
A specialist broker can match PI cover to your profession, contracts and any regulatory requirements at the best price. Find a business insurance specialist through Nesto — free, no obligation.
Frequently asked questions
Who needs professional indemnity insurance?
Anyone giving advice or providing professional services — it's mandatory for many regulated professions and often required by client contracts.
What does it cover?
The cost of defending and settling claims that your advice, designs or services caused a client financial loss.
How much cover do I need?
It depends on your regulator's minimum, client requirements and the potential size of a claim. A broker can advise the right level.
Is PI insurance a legal requirement?
For some regulated professions, yes. For others it's not legally required but often essential and demanded by client contracts.
Does it cover legal defence costs?
Yes — PI typically covers defence costs as well as settlements, which can be significant even for unfounded claims.