Professional Indemnity Insurance

Gain peace of mind and protect your business from third party claims against your work.

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What is Professional Indemnity insurance?

Professional indemnity insurance is essential for businesses that provide advice or services. This type of cover protects against claims of negligence, mistakes, or breaches of duty that could lead to financial losses for your clients.

Whether you're an IT consultant, interior designer or management consultant, having professional indemnity cover reassures clients and safeguards your business from unforeseen claims.

What does Professional Indemnity Insurance cover?

Professional indemnity insurance covers a range of risks, including negligence, misrepresentation, breach of confidentiality, and more. For example, if a client suffers a financial loss due to an error in your work, your policy can help cover legal defence costs and any compensation awarded.

What’s included?

Claims of negligence, such as giving incorrect advice.
Breach of confidentiality, including data breaches.
Legal defence costs and compensation payments for claims.

What’s not included?

Deliberate or fraudulent acts committed by the policyholder.
Fines or penalties imposed by regulatory authorities.
Claims arising from non-disclosed or pre-existing issues.

This content has been created for general information purposes. To ensure you have the correct level of insurance please see our full policy wording.

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Insurance built around the needs of the UK’s small businesses

Fast claims processing

If you need to make a claim, we've made it quick and easy, so you can get straight back to work knowing everything’s being taken care of.

Top-rated Customer Service team

Our friendly South Wales-based team is here to assist you every step of the way. Give us a call to speak directly with our specialists, who are ready to provide the support you need.

Everything in one place

Our easy-to-use online portal allows you to access your policy documents, manage payments, and make changes, all in one place and at your convenience.

Zero hidden fees

Update your policy at any time with complete flexibility, and enjoy the peace of mind that comes with no penalty fees, no admin charges, and no hidden costs.

Who Needs Professional Indemnity Insurance?

Professional indemnity insurance is essential for businesses that provide advice, designs, or professional services. It protects you against claims of negligence, errors, or omissions that may result in financial loss for your clients. This type of cover is especially important for consultants, designers, and other professionals whose work involves giving expert guidance or producing work relied upon by others.

Operating without professional indemnity insurance isn’t just risky—it can be financially damaging. A single claim could cost thousands in legal fees and compensation. Safeguard your reputation, your finances, and your future with reliable protection from Admiral Business insurance.

Who needs Professional Indemnity insurance?

Almost every business that provides advice or professional services should consider professional indemnity insurance. Whether you’re a consultant, designer, or contractor offering expert guidance, this cover protects you against claims of negligence, mistakes, or poor advice that result in financial loss for your clients.

Some key sectors that benefit from public liability insurance include: 

Consultants
Freelancers
Designers
Advisors

Without professional indemnity insurance, even small errors—like a missed detail in a report or a miscalculation in a design—could lead to expensive claims and legal costs. Protect your business, your reputation, and your peace of mind with tailored cover that fits your profession.

How much Professional Indemnity cover will  I need?

The amount of professional indemnity cover you need depends on the type of work you do and the level of risk involved. Cover limits typically range from £250,000 to £5 million, with many small businesses choosing around £1 million as a standard level of protection.

However, if you work on high-value contracts, provide specialist advice, or operate in a regulated industry like finance, law, or engineering, you may need a higher level of cover to meet client or industry requirements.

Professional indemnity FAQs

1. How much professional indemnity insurance do I need?

That depends on the nature of your work and the size of your contracts. If you’re working with high-value clients or projects, the financial impact of a mistake could be significant—so it makes sense to choose a higher limit.

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Most professionals opt for cover between £250,000 and £2 million, but we offer limits beyond that too. Some clients or regulators may also specify a minimum level of cover in your contract.

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Not sure how much you need? Think about the worst-case scenario. If a mistake in your work led to a financial loss or legal dispute, how much could a claim cost to resolve?

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2. What’s not covered with professional indemnity insurance?

While PI Insurance offers broad protection, there are some key exclusions.

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We don’t cover:

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Bodily injury or property damage (these are typically covered under Public Liability)
Claims arising from faulty workmanship or physical products
Known issues that occurred before your policy started
Deliberate acts, fraud or dishonesty
Breach of contract where no negligence is involved

You can find the full list of exclusions in the policy wording—but if you're ever unsure, we’re happy to help clarify.

3. What’s the difference between Public Liability and Professional Indemnity?

Public Liability Insurance covers you if someone is injured or their property is damaged due to your business activities—for example, a client trips over a cable on-site.

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Professional Indemnity Insurance, on the other hand, protects you if a client claims you’ve made a mistake in your work—such as giving poor advice or delivering a flawed design that causes them financial loss.

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If your work involves advice, consultancy, or specialist services, you may need both types of cover to be fully protected.

4. Do I need to have professional indemnityinsurance?

Some professions are legally or contractually required to have PI cover. For example:

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Architects and surveyors (regulated by the RICS or ARB)
Accountants and financial advisers (regulated by ICAEW or FCA)
IT contractors working with certain clients or public bodies

Even if it’s not required, having PI insurance can show professionalism and protect your livelihood—especially if a mistake could cost your client time or money.

5. What is a retroactive date?

A retroactive date is the earliest date your Professional Indemnity policy will cover work from. This is important because PI policies only cover claims made during the policy period, and typically only for work done after the retroactive date.

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If you’ve had continuous PI cover with no gaps, your policy may include unlimited retroactive cover—meaning you’re covered for past work, even if it was years ago.

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If you're switching providers, it’s vital to make sure your new policy includes your original retroactive date to keep your cover uninterrupted.

*£7.08 is the price for a professional indemnity policy for a single designer with £100,000 worth of cover. It is the equivalent of £85.00 per year when paying for the policy in one annual payment. Your quote will be personalised to your requirements and will reflect the risks you need to be covered against. The price is correct as of 28th April 2025.