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Professional Indemnity Insurance

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Professional Indemnity Insurance that protects you and your business, from the business insurance experts.

Professional Indemnity Insurance (also known as PI insurance, professional liability insurance or PII insurance) is a type of business insurance that protects you if you make a mistake in work you produce for a client, or if you provide advice to your client that causes them a financial loss.

PI insurance will also provide cover for legal costs and expenses in defending a claim as well as compensation payable to your client for loss or damages, making it a valuable business insurance policy for all sizes of business.

All businesses that provides a professional service to clients should consider carrying professional indemnity insurance for peace of mind that you are covered in case any mistakes, errors and omissions occur.

Getting professional indemnity insurance cover is quick and simple, with the option to pay monthly and spread the cost over the lifetime of the annual policy.


How much does indemnity insurance cost?

At Caunce O’Hara we offer comprehensive professional indemnity insurance from as little as £98.00 a year (that’s only £8.16 per month). Your premium will depend on the amount of cover you need, the risks of your profession and the excess amount.

Call our friendly team today to discuss the right level of professional indemnity insurance cover for your needs on 0333 321 1403.

freelance professional indemnity insurance

Freelancers can benefit from professional indemnity insurance by gaining peace of mind that should they make a mistake, they will be covered in case of a claim.

What cover does professional indemnity insurance provide?

Professional indemnity insurance can cover you for mistakes including professional negligence, unintentional breaches of copyright or confidentiality, Data Protection Legislation prosecution defence costs and loss or damage of documents.

It will also cover the costs of legal fees incurred and compensation claims if a client takes legal action against you.

or example, if you offer professional advice, services or designs that are incorrect or negligent and that cause a client to suffer a financial loss, then that client can make a claim against you. Professional indemnity insurance will provide cover for you in this instance.

For professionals offering advice and services in the UK, it is an essential type of business insurance that helps to ensure that if you make an error in your work or leave out something essential, you won’t be liable for the legal costs of putting it right.

Click here for a quick online professional indemnity insurance quote


Which professionals need professional indemnity insurance?

Many professionals will need this type of insurance in order to join their respective professional bodies. Some clients may demand that their freelancers and contractors have PI insurance to cover the value of your work.

You could be liable for thousands of pounds if you offer advice or a service which leads to your client losing money.

If you undertake any of the following business activities, you should consider carrying professional indemnity insurance;

  • Offering advice or professional services to clients as a contractor or consultant
  • Providing designs as an draughtsman or engineer
  • If a client requests that you take our professional liability insurance.
  • Part of an industry regulator or professional body that requires insurance coverage to be a member.
contractors working together benefit from professional indemnity insurance

Freelance contractors working together (especially on joint projects) can benefit from professional indemnity insurance and the protection it provides.


PII insurance benefits a wide range of professions including:

If your work brings you into contact with members of the public, then public liability insurance can be combined via Caunce O’Hara’s Business Combined liability policy, which will complement your PI cover.


What claims does professional indemnity insurance protect against?

Professional indemnity claims vary depending on the industry sector, below are some examples:

IT contractors – A software application or website that you delivered for a client is not fit for purpose. The client makes a claim against you for the cost of rectifying the mistake.

Engineers – CAD work you provide for a client contains incorrect measurements which cause delays to your clients project. The clients makes a claim against you for the cost of correcting the errors.

Management consultants – A business plan you delivered to a client doesn’t deliver the expected results that the client had hoped for. The client claims against you for any financial loss incurred as a result.

Construction contractors – Claims can be made due to perceived poor business advice, professional errors, defamation or libel, and sub-standard work. PI insurance can cover the cost of legal defence, compensation payments, any additional costs for rectifying an issue and loss of income as a result of the claim.

Creative media professionals – You make a mistake in work you produce for a client, or break the terms of a contractual agreement. The client claims for any financial loss incurred as a result. PI will cover your defence costs in the event that a claim is brought against you.


Professional indemnity insurance will not cover you for the following:

  1. Fines and penalties including non-compensatory damages.
  2. Radioactive contaminations and sonic bangs.
  3. War risks and terrorism.
  4. Mould.
  5. Other insurance – PI will not cover you where you have a right to payment under any other insurance.
  6. Legal action where the claim is brought in a court of law within the United States of America or Canada or where action for damages is brought in a court within the United States of America or Canada to enforce a foreign judgement.
  7. Employers liability.
  8. Property.
  9. Dishonest and malicious acts.
  10. Penalties or liquidated damages.
  11. Joint ventures.
  12. Circumstances known at inception.
  13. Pollution.
  14. Design and construct / supply.
  15. Insolvency or bankruptcy.
  16. Financial interest.
  17. Claims alleging any infringement of patent or intellectual property – All UK professional indemnity policies exclude breach of patent. If you use any patented material (e.g. stock images, designs, plans) without permission, and the owner sues you, your professional indemnity insurance will not help.
  18. Trading losses, trading liabilities, or debts incurred by any business managed by or carried on by you.
  19. Directors and officers – The performance or non-performance by you, any director or member of yours, or any employee of any duties as a director or officer of any company.
  20. Any involvement with asbestos or exposure to asbestos.
  21. Coronavirus (Covid-19)

For further detail of what is not covered by professional indemnity insurance please read our article here… What is not covered by professional indemnity insurance?


Is professional indemnity insurance a legal requirement?

A wide range of professional and regulatory bodies do require its members to carry professional indemnity insurance.

Legal professionals, financial advisers, chartered accountants, and certain healthcare professionals and may be required to carry indemnity insurance to be a member of their regulatory or professional body.

Even if it isn’t a legal requirement, many businesses, freelancers and contractors can benefit from the protection it offers.

Click here for a quick online professional indemnity insurance quote


What are the different types of professional indemnity insurance cover?

Two ways PII insurance policies are written;

  1. Claims made coverage. You are covered for any claims made for the duration of your cover, regardless of when the incident actually occurred.
  2. Claims occurring coverage. This will only cover you for work done during the insurance coverage period. Therefore, it is important to understand the terms of your agreement. Our team can help to talk you through the policy options in plain English so you won’t be left in the dark.


How does professional indemnity insurance work?

It is important to choose a policy that suits your individual business and industry.

For example, cover for designs will be relevant to a draughtsman, but not to a solicitors practice. Therefore, ensuring that your insurance policy reflects your business needs is essential.

Professional Indemnity insurance is written on a claims made basis. You must have professional indemnity insurance in place at the time a claim is made against you to be covered.

Most policies work on a 12-month basis and you will pay a monthly premium for your cover based on the excess.

Excess is the initial part of the claim that is not covered.

As a rule, the higher your excess, the lower your monthly premium. Likewise, if you choose a low excess, you can expect to pay a higher monthly premium.


What level of professional indemnity cover do I need?

The level of PI cover you need will depend on the value of the work that you do and the potential liability. We can help you build the ideal insurance policy that will protect all areas of your business.

Click here for a quick online professional indemnity insurance quote


What is Retroactive Cover and do I need it?

Retroactive Cover ensures that the policy you purchase is covering you for all the past work your business has undertaken, providing you are not aware of any issues with your work that could lead to a claim being made against you. Uninterrupted professional indemnity insurance must also have been in place to this point.

Freelancers and contractors will often swap insurance providers during their careers.


Does my professional indemnity policy cover any substitute I send in my place?

This depends on your PI insurance policy. Some policies include this as standard, others do not, so it is important to check this with your insurance broker.


Can I cancel my professional indemnity policy when my contract finishes?

Cancelling your PI insurance when your contract ends means you will be uninsured when a claim is made.

Professional indemnity insurance will only pay out for a claim made during the policy period, meaning you need to have the insurance in place when you receive notification of the claim being made against you.


What can I do to minimise my chances of a claim being made against me?

There are a number of ways you can work towards ensuring a potentially claim-free career;

  • Get sign-off for each milestone stage of every project you work on.
  • Be certain you can deliver the work required of a project before you sign a contract, otherwise you may be vulnerable to a claim.
  • Read and understand all of your contracts in full. Get legal advice with this if needs be and retain copies of all documents.
  • Ensure you carry an active PII insurance policy. Do not leave yourself uninsured!


Do I need PII insurance if I close my business?

Professional Indemnity Run Off cover provides you with insurance after your business has ceased trading. It is important to be aware that even though your business is no longer trading you can still be subject to a claim made against you for up to 6 years after your business closed, for instances see ‘claims in relation to’ below.

Run Off insurance is important for people entering retirement because they want the peace of mind that they are still covered. Run Off cover is usually a fraction of the premium of full PII insurance and in some cases the premium will decrease year on year.

The relevant limitation periods for different types of claims set out in the Limitation Act of 1980 are as follows:

Professional Indemnity insurance claims in relation to:

  • recovery of land: 12 years
  • a contract: 6 years
  • awards in arbitration: 6 years
  • debt arising under statute: 6 years
  • negligence: 6 years
  • breach of trust: 6 years
  • tort: 6 years
  • personal injury: 3 years
  • defamation and malicious falsehood: 1 year


What is the difference between public liability cover and professional indemnity insurance?

Both types of insurance are useful for business owners because they offer different types of coverage. Therefore, it is important to understand the difference between them.

  • Professional indemnity insurance covers you for negligence work;
  • public liability insurance covers you if your actions injure a member of the public, or cause property damage.


Get in touch with the Caunce O’Hara team today to discuss the right level of PI cover for your needs on 0333 321 1403. Our professional indemnity insurance policies start from only £98 per annum (that’s only £8.16 per month).

Or click the green button to get an online quote in minutes!

Click here for a quick online professional indemnity insurance quote


Questions people also ask about professional indemnity insurance… answered:

What is the difference between Professional indemnity insurance and Public Liability insurance?

Professional indemnity insurance Quotes – What should I look for?

What does professional indemnity insurance not cover?

The Freelancers Guide to professional indemnity insurance.

6-year Run Off cover to enhance your professional indemnity insurance.

Retroactive PI Insurance Cover – covering your past work

Complete your cover

Make sure your business is completely protected. We can also cover you for:

  • Business Combined Insurance

    In addition to PI insurance, you can further protect your business with our business combined insurance. This package offers great value, with complete coverage for your business in one simple bundle, including:

    • Public liability insurance for £1 million, with the option to increase to £5m, if you have to visit client premises or they visit yours.
    • Employers’ liability insurance for £10 million, covering you for claims from employees for injury or illness during their employment.
    • Office contents insurance up to £5,000 to protect your office contents, computer equipment and furniture against accidental damage and theft, with optional insurance for portable equipment.
    • Directors’ and officers’ liability insurance from £250,000 if you’re held personally responsible in claims against your business by creditors, employees, customers or regulatory bodies like HMRC.

    Click here for a quick quote

  • Tax Enquiry & Legal Expenses Insurance & Contract Review

    Protects your business against the costs of legal action taken against you, including contract disputes, debt recovery, tax, VAT and HMRC investigations. £100,000 cover for just £75 a year.
    IR35 Contract Reviews available for only £60.00 per contract when you purchase this policy.
    Click here for a quick quote

  • Professional Indemnity Insurance

    Professionals should have confidence in their work, but we all know that mistakes can happen. Don’t let those mistakes ruin your freelance career with the support of comprehensive professional indemnity insurance. We offer nine choices of cover from £50,000 to £5m to protect you if a claim is made against you for a mistake that happened as a result of your work which caused your client a financial loss.
    Click here for a quick quote

  • Professional Practices PI Insurance

    If your business offers professional advice or services, professional practices insurance can help to protect you against the financial blow of compensation claims and legal fees if a client makes a complaint about your work. As a professional practice, this is probably the most important cover you need. Your business will be insured for claims up to £2m if you’re sued for an accident that happened as a result of your work, or if a dissatisfied customer files a negligence claim against you.
    Click here for a quick quote

  • Energy PI Insurance

    Energy professional indemnity insurance is probably the most important cover an energy contractor needs. This type of specialist professional indemnity insurance will cover you for claims if you’re sued for a mistake that happened as a result of your work, or if a dissatisfied customer files a negligence claim against you. Choose from five limits of cover from £100,000 to £2m.
    Click here for a quick quote

  • Personal Accident, Sickness & Travel Insurance

    24 hours a day protection (not just while you’re at work) to cover you in case of a work accident or sickness caused by your work. Prices start from only £36.44 a month for £50,000 of cover.
    Click here for a quick quote


  • Competitive pricing
  • Dedicated handlers to assist with your queries
  • Documents issued instantly via e-mail
  • Access to your own claims team
  • Cover for legal defence costs and compensation bills
  • Monthly payments
4.8/5 4.85/5
  • "A very helpful, kowledgable and adaptable telephone advisor enabled discussion beyond standard questions in order to secure the most approprite insurance honed to my business deeds and relevant discounts. This led to the most comptitive quote over other larger companies."
  • "Used these before then changed to another broker who could not help me with an update to my insurance. Caunce O'Hara had no problem and set up my insurance in about five minutes. Highly recommended."
  • "All correspondence has always been clear and reply to questions swiftly answered. Cost is very competitive. Would definitely recommend."
  • "I have automatically renewed my indemnity insurance for several years but as I have gradually reduced work commitments I needed to discuss my options prior to making a decision about renewal.
    I found the person I dealt with very helpful and knowledgeable about my options."
  • "Insurance Renewal - Plenty of warning up front as to renewal date, requests for any changes and quote. Reminder leading to actual renewal date. New certificates available on date agreed. Can't complain at all about the service."
  • "I have been with Caunce O'Hara for almost 12 years now and am always very pleased with their service and customer support as well as the costs for the cover."
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