10% of our customers paid less than £4.61 a month^ to insure their business.
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^10% of our customers were quoted less than £4.61 per month in April-June 2026 for their professional indemnity insurance based on the monthly cost when paying for the policy in one annual payment, excluding any interest charged on instalment payments.
If you’re self-employed or are a small business owner, you should consider taking out a professional indemnity policy. We can help you find the protection that suits you and your business needs, and compare deals to help you find a great deal.
Professional indemnity insurance, sometimes referred to as PI insurance, covers you in the event that your business damages the finances or reputation of a client.
A professional indemnity policy can allow you to recover losses from compensation claims and related legal fees.
Compensation can vary significantly, based on the type of claim that’s awarded as well as the severity of the individual circumstance. But having this cover in place can reduce the financial impact on your business.
The specific policy you’ll need will depend on factors such as your industry, the size of your business and the services you offer.
You may receive cover for causing a financial loss, or reputational damage, to a customer for:
Breach of confidentiality – this includes sharing information without permission, or infringing any copyrighted material, trademarks or intellectual property rights.
Professional negligence – this may be through a mistake on your part, or incorrect information or advice provided to a customer that loses them money. It may also include your client overrunning on their budget and making a compensation claim against you.
Loss of information – loss of documents or data.
Acts of defamation – such as libellous or slanderous statements made about a customer/client.
Legal costs – includes compensation payments awarded to the defendant. Your defence costs are also paid, including legal fees.
Bodily injury – injury to someone who isn’t an employee due to bad advice, product design or specifications given by you.
Dishonesty of employees – if a claim is made against your business because of fraud or dishonesty by a member of your staff.
This type of cover, if you own your own business, may also extend to your employees.
The cost of an indemnity insurance policy depends on:
The size of your business
The type of industry you work in
The level of cover you need – some professional bodies and regulators may insist members are insured for a minimum amount
Your claims history
How much excess you’re willing to pay.
A quick and easy way to find out how much professional indemnity insurance costs is to compare quotes with us.
Not every business needs professional indemnity insurance – it isn't legally required. Usually it applies to businesses that offer knowledge, skills or advice as part of their work. It might be needed by a self-employed person like a consultant or an accountant, or by a company doing certain types of work.
Some professionals will need to have professional indemnity insurance if they want to be a member of their professional body, or their industry might have regulations that require them to have the insurance. These professionals include:
solicitors
accountants
financial advisors
architects
chartered surveyors
some medical professionals
You could also find that your contract with a client company requires you to have this cover in place.
The kinds of businesses that might need professional indemnity insurance include marketing agencies, PR consultancies, management consultants, web agencies and design companies. These are all organisations whose advice could lead a company to change its strategy.
Yes, you may need professional indemnity insurance if you work from home and provide advice, services or designs for your clients.
You almost certainly won’t be covered for professional indemnity under your home insurance policy.
Here are some examples of the type of slip-ups that could lead to a claim:
You accidentally reveal sensitive information about a client by forwarding an email to the wrong person.
You print an error on an advertising leaflet that a client sends out to customers.
You breach copyright by using a stock photo on your website without permission.
You leave a laptop on a train that contains sensitive client data such as names, addresses or credit card information.
This is the date from when your professional indemnity cover starts and has since continued uninterrupted.
It’s called retroactive because your provider has agreed to cover you from a date earlier than the date you first took out your cover. This can be useful if, for example, you take out your policy after you start work on a project you need cover for.
If you switch providers, make sure your new policy has a retroactive date you’re happy with so that you can remain protected for claims against work that was done in the past (within the covered period). Otherwise you will no longer be covered for any past work.
Professional indemnity insurance protects you against compensation owed to a client.
Public liability insurance protects you against claims if a member of the public is injured or their property damaged because of your business’ activities.
Yes, professional indemnity insurance is classified as an ‘allowable expense’, which means it’s tax deductible. Other types of business insurance are also tax deductible.
In theory you can, but most providers advise against this and some only offer policies lasting for a minimum of 12 months.
Professional indemnity insurance works on a ‘claims-made’ basis. This means there must be an active policy in place for you to make a claim.
Suppose you had a short-term contract that ran from January to July, and you only had cover for the same period. If you’re sued by a client after a costly error comes to light in September, you won’t be covered.
When you take out professional indemnity insurance, your provider will usually email your policy documents to you straight away. Some clients will ask to see proof of cover before they hire you. You can show them your insurance certificate outlining the level of insurance you have for the type of work they’re asking you to do.
