Call Us: 0333 321 1403

What is Professional Indemnity insurance?

Get your quote

Professional Indemnity Insurance (PI) – is a type of business insurance that will cover the costs of your legal defence and any appropriate rectification costs (the costs of making a mistake right) if a client you have done work for takes legal action against you for a financial loss they have suffered due to an alleged mistake or negligence in the work you have produced for them.


Is PI insurance a mandatory requirement?

Unlike Employer’s Liability Insurance, Professional Indemnity Insurance is not a legal requirement. Yet it is often stipulated as a mandatory requirement for members of professional bodies and by some regulators. PI Insurance is usually required by contractors before they can be deemed eligible to undertake a client’s contract for work.


Do I need PI 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 professional liability 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 to ensure you and your client are protected:

  • Offering advice or professional services to clients as a freelance contractor or consultant.
  • Providing designs as an architect or engineer.
  • If a client requests that you take out professional liability insurance.
  • If you are part of an industry regulator or professional body that requires a minimum level of insurance cover to be a member.

freelance professional indemnity insurance

What does PI insurance cover?

PI Insurance provides cover for legal costs and expenses incurred in defending a claim, as well as compensation and costs that may be awarded due to:

  • Professional Negligence including making a mistake on a client project or providing them with poor advice that causes them to lose money as a result.
  • Defamation and libel including making false comments about a client or competitor which causes damage to their reputation.
  • Loss of data or documents.
  • Loss of goods or money for which you are responsible.
  • Unintentional breach of copyright including using an image on your website or other marketing without permission.
  • Unintentional breach of confidentiality including sharing sensitive information without consent.


What limit of indemnity do I need?

The limit of indemnity you need will depend on the work you do and the level of risk. Some factors to take into consideration include:

  • Size of your business, usually including annual turnover.
  • Size of the contracts you work on.
  • Potential legal costs you could face.

As your business grows you can extend the level of cover needed.

If you need professional indemnity insurance for a specific contract, it is typical for the minimum amount of PI insurance required to be stated in the contract. Also, this is often the case for regulatory and professional bodies, so it is important to check the minimum insurance you need before arranging cover.


Looking for a quote or more information about PI insurance?

You can find out more about PI Insurance by calling our friendly Feefo Gold award-winning team on 0333 321 1403. Caunce O’Hara are experts for professional indemnity insurance for freelancers and contractors and our team will be happy to help you with any questions you have.


Alternatively, click to build a personalised PI quote online in minutes!

Click for a liability insurance quote



Related Articles:

Why Do You Need Professional Indemnity Insurance?

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

What is Professional Indemnity insurance?

Professional Indemnity Insurance Quotes – What To Look For

How Much Professional Indemnity Cover Do I Need?

Freelancers Guide to Professional Indemnity Insurance

Find out more about PI here


Caunce O’Hara & Co Ltd have been awarded the Feefo Gold customer service award in 2018 and 2019.

The company was the winner of the General Broker of the Year award in 2009 and 2010 at the Manchester Insurance Awards.

Caunce O’Hara won the Most Effective Use of E-business in 2007 at the UK Broker Awards.


  • 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
  • "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 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."
  • "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."
  • "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."
  • "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."
Read more reviews

Get in touch

Give us a call and tell us all about your indemnity requirements.

0333 321 1403

We're here for you Mon - Fri 8:30am - 5:30pm

Can't get through right now? Request a callback

Call me back

Latest Posts