Professional Indemnity Insurance
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Why Compare Professional Indemnity Insurance Quotes at SimplyQuote.co.uk?
Searching for professional indemnity (PI) insurance quotes can be time-consuming and take you away from your core business. Let SimplyQuote do the heavy searching for you. We find and compare quotes from the UK’s leading insurers on your behalf. We provide you with the best options quickly and conveniently to help your business get a great deal on professional indemnity cover.
All you need to do is complete a short form providing the following information and we’ll start collecting the best professional indemnity quotes for you to compare.
Your personal details
Tell us who you are, your contact details, and your type of business
Your business information
Advise the size of the business, the number of staff, your turnover projections for the next year, and any past claims against the business.
Specific cover requirements
What are the values of your projects or contracts? What are the most critical risks? Do you require specific coverage?
Do I Need Professional Indemnity Insurance?
If you are a self-employed professional or run a professional services business, professional indemnity (PI) cover is a wise investment. Expensive settlement costs and legal fees can be a crippling blow if you haven’t made the necessary provisions.
What type of businesses should have professional indemnity insurance?
PI insurance is essential for businesses like marketing agencies, solicitors, financial advisers, architects, engineers, PR consultancies, and some medical professionals.
Other businesses and professionals that benefit from such insurance include:
- Designers
- Chartered surveyors
- Trainers and coaches
- IT consultants
- Estate agents
- Digital agencies
- Business and management consultants
Is professional indemnity insurance required by law?
No, PI insurance isn’t a legal requirement. That said, many key industry bodies require you to hold professional indemnity before you can join. The Association of Chartered Certified Accountants, the Chartered Institute of Taxation, and the Royal Institute of British Architects are among these organisations.
Some clients may also insist you hold professional indemnity cover before they contract with you.
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What Does Professional Indemnity Insurance Cover?
When you buy professional indemnity insurance, you’re covering yourself against professional legal and compensation costs. A professional indemnity policy will typically cover:
- Professional negligence: This is the core PI coverage. It protects you if a client alleges that your negligent advice, services, or designs caused them financial losses. The alleged negligence and errors may include unintentional mistakes on your team’s part, failure to deliver promised services, or failure to meet professional standards.
- Legal costs: This covers the legal expenses you incur to defend yourself against claims of professional negligence.
Depending on your PI policy, you can also be covered for:
- Data breaches and cyber liability: Protects you against claims of breaching your client’s confidentiality or losing their sensitive information.
- Loss of documents: Cover for claims that you lost the client’s documents, data, or intellectual property – including the cost of recreating the lost assets.
- Defamation and libel: Cover for claims that your activities defamed your client.
- Investigations: Cover for the costs of investigations into alleged negligence claims. This may include the hiring of experts and forensic accountants.
How Much Professional Indemnity Insurance Do You Need?
The right professional indemnity insurance policy for your business depends on several factors. The services you provide and the potential risks involved are key considerations. You should also take account of industry standards, regulatory requirements, and the specific needs of your clients.
Assessing your business’s key risk areas helps determine the scope of cover needed. For example, cover against defamation is more relevant for professionals in fields such as advertising, media, and public relations.
The appropriate cover amount will depend on factors such as the size of your business, the value of contracts, and the potential financial impact of a claim. Cover available ranges from around £50,000 to over £5 million. You want a PI policy that adequately protects your relevant business risks for the right amount while not breaking the bank.
How Much Does Professional Indemnity Insurance Cost?
How much professional indemnity insurance costs depends on factors like the turnover of your business, the industry, the number of employees, and your claims history. Larger businesses with more financial assets may require higher coverage while high-risk sectors like financial services might attract heavier premiums.
Remember that cost is only one factor in the equation. You also want to ensure the cover adequately addresses your business needs. Professional indemnity insurance works best when the policy is tailored to your specific requirements and risk areas. For example, it may be worth paying a slightly higher premium if it significantly reduces the excess payable on claims.
How can I reduce the cost of my PI insurance?
Here are a few tips to keep your indemnity insurance costs down:
Shop for multiple quotes
Today, getting a free professional indemnity insurance quote from the comfort of your home is easy. Don’t accept the first quote you receive. Shop around to better understand what’s on offer. This will help you find the policy and the premium that works for your business and budget.
Only buy the cover you need
Focus on the cover that addresses your most likely risks. Policies may cover multiple risks but only half may be relevant to your business. Excluding the cover options you don’t need can cut your premiums.
Pay the policy annually
If possible, aim to pay your premium upfront annually rather than in monthly instalments. There is almost always a discount for paying annually.
Access quick, competitive professional indemnity insurance quotes through SimplyQuote’s online comparison tool today.
Related Types of Professional Liability Insurance
Professional indemnity insurance policies provide financial protection when clients initiate a legal claim against you. But what about claims made against your business by employees, the public, or business tenants?
Let’s look at the insurance available to protect you from these risks:
Employer’s liability insurance:
If you have employees, it’s advisable to hold employer’s liability insurance. Employer’s liability covers you should your employees claim against the business for injury or harm they suffered while doing their job.
Public liability insurance
Public liability insurance covers you for compensation claims made by the general public. Claimants may include visitors, suppliers, passers-by, or customers.
Landlord insurance
If you own the building from where you operate and share it with other businesses or have other properties in your professional portfolio, it’s advisable to have landlord insurance. This covers you if your tenants lodge a compensation claim for injury or damages suffered on the property.
Car insurance
It’s important that vehicles used for business purposes are appropriately insured so that you are covered if your vehicle causes injury to other road users or your employees, or damages property during business operations.
Frequently Asked Questions
Professional indemnity insurance is a business insurance that protects businesses and freelance professionals from financial loss arising from professional negligence or errors made while providing their service.
Professional indemnity insurance protects professionals if a client takes legal action against them claiming negligence or unsatisfactory work. Indemnity insurance provides the professional with financial protection against the client’s compensation claim and associated legal fees.
Yes, PI insurance is tax deductible. It’s a business insurance expense and you can deduct the insurance from your revenue when calculating your taxable profit.
If you don’t have professional indemnity cover, your business, or you – personally – may be held liable for legal costs, damages, and settlements resulting from claims of professional negligence. A sizeable unexpected claim could potentially bankrupt you or the business.
If you provide professional services and sell expertise and knowledge, a professional indemnity policy is recommended irrespective of where you work from.