How to Get Professional Indemnity Insurance in the UK (2025 Guide)

Protect your UK business with professional indemnity insurance — essential coverage for freelancers, consultants, and service providers.

Introduction

If you're a freelancer, consultant, contractor, or business professional offering services or advice, you may need Professional Indemnity Insurance (PII) in the UK. This type of insurance protects your business against legal claims and financial loss due to professional mistakes or negligence.

In this guide, we’ll explain:

• What professional indemnity insurance is

• Who needs it

• Whether it’s legally required

• What it covers (and what it doesn’t)

• How to get a policy in the UK

• Costs and best providers in 2025

What Is Professional Indemnity Insurance?

Professional Indemnity Insurance (PII) is a type of business insurance that covers legal costs and compensation claims if your client suffers a financial loss due to your professional error, negligence, or poor advice.

Example: A marketing consultant gives poor strategy advice that causes a client's revenue drop. If the client sues, PII covers legal fees and compensation.

Who Needs It in the UK?

You should consider PII if you:

• Offer consulting, advice, or specialist services

• Handle client data, intellectual property, or sensitive information

• Work in regulated industries (e.g. legal, accounting, architecture, healthcare)

• Are a freelancer or self-employed professional

• Run a limited company that deals with contracts

Common professions that require PII:

• IT consultants & developers

• Accountants & bookkeepers

• Designers (graphic, UX, interior)

• Architects & engineers

• Marketing & SEO experts

• Coaches & therapists

• Solicitors, surveyors, medical professionals (mandatory by law)

Is It a Legal Requirement in the UK?

Not always, but for some professions it is:

Profession	PII Mandatory?
Solicitors	✅ Yes
Chartered accountants	✅ Yes
Financial advisors	✅ Yes
Architects	✅ Yes (regulated)
Freelancers / consultants	❌ Optional but highly recommended

Even if not required by law, many clients, agencies, and platforms (like Upwork or corporate contracts) require proof of insurance before working with you.

What Does It Cover?

✅ Covered:

Professional negligence or bad advice

Breach of confidentiality or data mishandling

Defamation (libel/slander)

Intellectual property infringement (accidental)

Loss of documents or data

Legal costs and compensation payouts

❌ Not Covered:

Criminal acts or intentional wrongdoing

Employee disputes (covered under Employer’s Liability)

Bodily injury or property damage (covered by Public Liability)

Cyber attacks (covered by Cyber Insurance)

How to Get Professional Indemnity Insurance in the UK

Step 1: Assess Your Business Risk

What services do you offer?

What kind of clients do you work with?

Are you handling sensitive data or giving legal/financial advice?

Step 2: Compare Insurers and Brokers

Step 3: Choose Coverage Amount

Typical limits: £250,000 – £2 million

Higher coverage = higher premium, but more protection

Some clients may request minimum coverage levels

Step 4: Get a Quote & Buy Online

Many providers offer instant quotes and same-day policy documents

Save your Certificate of Insurance — often required for contracts and platforms

How Much Does It Cost?

Profession	Approx. Monthly Cost
Freelance graphic designer	£10–£20
IT consultant	£15–£30
Accountant	£20–£40
Architect / engineer	£40–£100
Legal or finance advisor	£50–£150

💡 Your cost depends on:

• Business size and revenue

• Type of services provided

• Claims history

• Level of coverage

Can Sole Traders and Freelancers Get It?

✅ Yes — in fact, freelancers and one-person companies are one of the biggest users of professional indemnity insurance in the UK. Many clients won’t work with freelancers unless they can provide proof of coverage.

What Happens If You Don’t Have It?

If you're sued for professional negligence and don’t have PII:

• You must cover all legal fees and compensation yourself

• May lose clients, contracts, or licensing

• Could face business closure or bankruptcy

Even one claim can ruin an uninsured business.

Final Thoughts

Professional indemnity insurance is a smart, often essential protection for UK-based professionals. Whether you're a solo freelancer or a growing agency, PII helps you work with confidence, meet contract requirements, and protect your business from costly legal issues.