hero image

Professional Indemnity Insurance (PI)

Quick, easy and personalised indemnity insurance so you can work with the peace of mind that you’re covered.

Start your quote
feefo logo
Trusted by over 23,000 clients for their business insurance
Quick and easy online cover for your profession
Rated 4.7 out of 5 by over 3,500 clients at feefo.com
Professional indemnity insurance

Professional indemnity insurance (also known as PI insurance, professional negligence insurance or professional liability insurance) is widely regarded as an essential type of business insurance if you provide advice, designs or a professional service to your clients.

Start your quote

What are the benefits of professional indemnity insurance?

Professional indemnity insurance (PI) provides cover that will pay your legal costs and certain compensation payments that might be due if your client takes legal action against you for alleged errors you’ve made when providing professional services, advice or designs that have caused your client a financial loss.

The PI policy offers the following benefits:

  • Protection against professional negligence claims.

Professional negligence takes many forms, including making a mistake a client project, or providing poor advice, if they have allegedly caused a financial loss.

  • Cover for accidental breach of confidentiality.

Unintentional sharing of confidential client information due to human error.

  • Insurance against unintentional breach of copyright.

Social media sees people posting images they may not have permission to use. Many online images are protected by copyright, including professional photographers and stock image libraries. Using images without permission can result in a claim against you.

  • Cover for publishing a false statement that damages a person’s or company’s reputation.

PI covers legal defence costs to defend a valid claim of defamation or libel of a competitor.

  • Insurance if you lose documents or data you are responsible for.

PI covers money spent by you in replacing or restoring documents which are destroyed, damaged, or declared lost after a search, during the policy schedule.

  • Court attendance compensation.

If a director or partner attends court as a witness in connection with a claim, the policy provides compensation for each day attended.

  • Defence costs for data protection legislation prosecution

Data and privacy protection legislation is strict and can be easily breached without knowing. It’s important to carry insurance to cover costs and expenses if a claim is made against you.

  • Cover if you lose money or goods you’re responsible for and any other actual or alleged act, error or omission resulting in a civil liability committed because of your services.

Which professionals need PI insurance?

Despite the elevated risk of mistakes being made when undertaking client work, a surprising number of business professionals neglect to protect themselves with professional indemnity insurance.

In many cases this is because they are unaware that they need this type of insurance protection and are unaware of the potentially damaging outcome of a professional indemnity claim being made against them.

Still unsure if you need PI cover?

If you are unsure if you need professional indemnity insurance protection, we have compiled a list of instances when it is advisable to be insured, as follows:

  • You provide an expert service to your clients
  • You’re a provider of consultancy and advice to your clients
  • You handle personal information and data for your clients
  • Your professional membership body insists you carry it
  • The client insists that you have it

The list includes freelancers, contractors, small business owners and even sole traders. If you provide these services, then professional indemnity is an insurance that you should consider carrying for peace of mind that you are covered.

Professionals who benefit from carrying PI insurance includes, but is not limited to:

  • Management consultants
  • IT contractors and IT consultants
  • Technical and mechanical engineers
  • Creative designers
  • Marketers
  • Photographers
  • Social workers
  • Teachers and tutors
  • Web designers
  • Recruiters
  • Property professionals e.g.: estate agents
  • Accountants and financial professionals


Caunce O’Hara is a business insurance broker offering insurance protection to freelancers, contractors, and small businesses. If you would like a competitive online quotation for your business insurance, please call 0333 321 1403

Why choose Caunce O'Hara for your business insurance?

As freelance insurance experts, we're your number one choice for your business protection.

Caunce OHara business insurance for contractors and freelancers

Trusted by over 23,000 clients for their business insurance.


Immediate cover available, with documents issued via email in minutes!


Over 25 years’ experience of insuring self-employed professionals, including freelancers, contractors, and small business owners.

Golden star
I had spoken to Caunce O'Hara prior to the transaction and it all went smoothly for me. I have used them now for 12 years.
Trusted Customer
Golden star
Excellent Customer service and value for money. Best public liability, professional indemnity, and employers’ liability insurance offer I’ve come across.
Trusted Customer
Golden star
ompany insurances renewed for another year with Caunce O'Hara. No drama, issues or concerns. Professional Indemnity cover increased as per our instructions.
Trusted Customer

Frequently Asked Questions

PI 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 client’s project. The client makes a claim against you for the cost of correcting the errors.

Management consultants – A business plan you delivered to a client does not deliver the expected results that the client had hoped for. The client claims against you for any monetary 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 monetary loss incurred as a result. PI insurance will cover your defence costs if a claim is brought against you.

If your circumstances change, either at work or in your personal life, that require you to end your contract early it is in the best interest of both yourself and the hiring party to make this transition as easy as possible. Read our article covering what the potential implications for a contractor leaving a contract early could be.

At Caunce O’Hara we offer comprehensive PI insurance from as little as £98.00 a year (that is 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 cover for your needs on 0333 321 1403 or click the green button below for an online quotation.

Professional Indemnity insurance does not cover all insurance claims, including:

  • Fines and penalties
  • Radioactive contaminations and sonic bangs
  • War risk and terrorism
  • Mould Legal action
  • Employers’ liability
  • Property
  • Dishonest and malicious acts
  • Penalties or liquidated damages
  • Joint ventures
  • Circumstances known at inception
  • Retroactive date
  • Pollution
  • Design and construct/supply
  • Insolvency or bankruptcy
  • Financial interest
  • Trading losses
  • Directors and officers
  • Asbestos
  • Patent
  • Coronavirus (Covid-19)

Click here to find out more detail about what is not covered by PI insurance.

There are two ways in which professional indemnity policies are written:

Claims made coverage – You are covered for claims made for the duration of your cover, regardless of when the incident occurred.

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, so you will not be left in the dark. Simply call 0333 321 1403 for assistance.

The level of protection you need will depend on the value of the work you do and the potential liability. Caunce O’Hara can help you build the ideal insurance policy that will help protect all areas of your business.

Caunce O’Hara offer professional indemnity ‘run off ‘cover, which provides you with insurance after your business has ceased trading. Run Off insurance is important for people entering retirement because they want the peace of mind that they are still covered.

Run off insurance can sometimes be a fraction of the full professional indemnity insurance premium, and in some cases the premium will reduce year-on-year.

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

PI 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

Public liability insurance (PL) is designed to protect your business against third party claims for injuries or property damage.

Employers liability insurance (EL) will cover the cost of defending or settling a claim against you from an employee who has suffered injury or disease as a result of the work they do for you.

It is important to be aware that as a self-employed business owner, a claim can be made against you personally with unlimited personal liability, therefore Directors and Officers insurance is a valuable insurance policy which will cover you in this instance, which is provided as part of our Business Combined Liabilities insurance product.

Legal Expenses insurance will also provide cover for costs incurred from a legal occurrence or claim that your indemnity and liability insurance does not cover, including the costs incurred from an IR35 tax investigation.

Cyber insurance, also known as cyber liability insurance, will cover your business in the event of a malicious attack on your computer systems and your data.

Personal accident insurance can provide cover for your loss of earnings while you are unable to work due to a work-related accident or illness caused by your work.

Commercial crime insurance can be beneficial to anyone who ones or runs a business, no matter how large that business is. Theft and other crime can have catastrophic consequences for a business and potentially to those who are connected to that business, such as suppliers and employees.

Contact us

Call 0333 321 1403

Our understanding of the freelance sector and the challenges you face daily, enables us to tailor our insurance products to meet your needs. Contact us to talk about your insurance requirements and to better understand the insurance we offer.

Get in touch
Contact Caunce O'Hara for your business insurance today