Professional Indemnity5 min read

Professional Indemnity Insurance UK: What It Covers, and What It Doesn't

Professional Indemnity is one of the most misunderstood commercial lines, mainly because of what people assume it covers that it actually doesn't.

Professional Indemnity (PI) insurance protects your business against claims that your professional advice or service caused a client financial loss through negligence, an error, or an omission. It's essential for consultants, accountants, architects, IT contractors, and any business providing paid professional advice.

The gap most businesses miss: PI is often assumed to cover cyber incidents too, it doesn't, properly. Some PI policies include a small bundled cyber extension, but insurers are increasingly withdrawing even that limited cover. A genuine cyber incident, a hack, a data breach, needs its own dedicated cyber policy.

What PI typically covers

What it does not properly cover

Who is contractually required to hold it

Many professional bodies and client contracts make PI a condition of doing business, solicitors, architects, and financial advisers are typically required to hold it by their regulator, while many corporate clients simply won't sign a contract without proof of cover.

Get Professional Indemnity cover sorted

Free, no obligation. We compare quotes from insurers who specialise in this exact line of cover.

See My Cover Options →

Cover scope varies significantly by insurer and profession. Always confirm exact terms, especially cyber exclusions, directly with your broker.