Professional Indemnity Insurance
A single allegation of professional negligence can be costly to defend, even if you have done nothing wrong. Professional indemnity cover protects your business and your reputation.
Get in touchWhat is professional indemnity insurance?
Professional indemnity insurance protects your business if a client alleges that your professional advice, designs or services caused them a financial loss. It covers your legal defence costs and any compensation or settlement, up to the limit of your policy.
Claims can arise from genuine mistakes, misunderstandings or even unfounded allegations. Defending yourself without insurance can be extremely expensive, and the legal costs alone can run into tens of thousands of pounds regardless of whether you were at fault.
Many professional bodies and client contracts require you to hold professional indemnity insurance as a condition of practising or tendering for work. Even where it is not mandatory, it provides important financial protection for any business that gives advice or delivers professional services.
What is covered
- Claims of professional negligence
- Legal defence costs
- Breach of confidentiality claims
- Intellectual property infringement claims
What is not covered
- Deliberate or criminal acts
Intentional wrongdoing is excluded from all professional indemnity policies
- Bodily injury to third parties
Covered by public liability insurance instead
Who needs professional indemnity insurance?
IT contractors and consultants
Software developers, IT consultants and anyone delivering technology projects or advice
Accountants and financial advisers
Professionals handling clients' finances where an error could cause significant loss
Architects and surveyors
Design professionals whose plans or assessments directly affect property and safety
Marketing and creative agencies
Agencies delivering campaigns, branding or content where mistakes could harm a client's business
Management consultants
Anyone providing strategic advice that influences business decisions
WHY CECIL
Built differently.
UK specialists
Leading UK insurers only. No American-style policies retrofitted for British businesses.
Straightforward process
Tell us about your business. We find the options. You choose. No lengthy forms, no automated runaround.
Cover that actually fits
Cover that fits how your business operates, not a generic category. Tell us what you do and get the options that actually match.
Here when it matters
When something goes wrong, you need your insurer to respond. Only insurers rated for their claims handling.
Common questions about professional indemnity insurance
Do I need professional indemnity insurance by law?
Professional indemnity insurance is not a blanket legal requirement in the UK. However, many professional bodies and regulators, such as the Solicitors Regulation Authority and the RICS, mandate it as a condition of practising. Many client contracts also require it. Even where it is not mandatory, it is strongly advisable for anyone providing professional advice or services.
What is the difference between professional indemnity and public liability insurance?
Professional indemnity covers claims arising from your professional advice, designs or services causing a client financial loss. Public liability covers claims from third parties who are physically injured or whose property is damaged because of your business activities. Many businesses need both.
Does professional indemnity insurance cover past work?
Most professional indemnity policies operate on a claims-made basis, meaning they cover claims made during the policy period regardless of when the work was done. You usually need to maintain continuous cover, as switching insurers or allowing your policy to lapse could leave gaps. Some policies allow you to add retroactive cover for prior work.
Industries that need this cover
Professional Indemnity Insurance is commonly required across these sectors.
Interested in Professional Indemnity Insurance?
We will be in contact when Cecil launches.