How much does professional indemnity insurance cost?

The insurer needs to understand your work and responsibilities before pricing the risk. The information requested can vary, and some services may need different terms or may not be accepted.

Factor	Why it matters	What to prepare
Professional services	Advice, implementation and specialist work can create different claims.	All activities and agreed outputs.
Business size	Fee income, turnover or other requested measures help show the size of your business.	Figures requested by the provider.
Clients and projects	Responsibilities and the consequences of errors can differ.	Relevant client sectors and project details.
Contracts	Required cover and additional commitments may affect what you need insured.	Insurance clauses and responsibilities accepted.
Locations and jurisdictions	Client location, work location and where claims can be brought are separate checks.	Relevant countries and arrangements.
Claims and known problems	History and matters that could lead to a claim can affect the insurer’s assessment and what you need to disclose.	Accurate details of claims and relevant circumstances.
Policy terms	Limits, dates, exclusions and additional cover change what is priced.	Required terms and existing cover.

Services matter more than a broad job label

Example: business consultant. A consultant prepares reports and recommendations. The provider needs the subjects, how clients use the advice and any responsibility for putting it into practice. See consultant insurance for checks relating to consultancy work.

Example: IT contractor. A contractor implements systems and provides ongoing support. The provider needs the development, configuration and support duties, including any specialist work. See IT contractor insurance for checks specific to IT services.

These hypothetical examples illustrate information to declare, not which business pays less. Your job title alone does not confirm that every service is covered. Describe specialist activities, including security or managed services, separately.

Fee income, clients and contractual responsibilities

Use the income or turnover measure requested. There is no fixed formula that turns your income, contract value or turnover into a PI price.

A client’s claimed loss could exceed your fee. Explain responsibilities such as implementation. Identify promises made in your contract, including warranties or guaranteed results. A contract’s minimum insurance amount does not, by itself, establish that the policy covers those responsibilities.

Overseas work, outsourced services and specialist activities

Describe overseas clients, where work happens and where proceedings could be brought.

Describe work delivered by associates or subcontractors and your responsibility for it.

These details can affect availability and scope as well as price. Paying more does not necessarily mean a specialist service is insured. Ask the provider to confirm the actual activities, people and businesses covered.

A published price can provide context if the businesses, services and policy basis are clear. A starting price does not establish what your business will pay or which claims are insured.

Starting prices, medians and customer thresholds

Use the explanation or footnote beside the number to identify what it measures.

Price reference	Meaning	Limitation
Mean	All prices added together, divided by the number of prices.	Describes the stated group, rather than every professional business.
Median	The middle price when prices are arranged in order.	A profession-specific median is not a market-wide price.
Customer or quote threshold	A stated proportion paid or was quoted below or at a figure.	A price paid or quoted for a small proportion of customers is not automatically typical or an average.
Starting price	An advertised starting price on the stated basis.	Does not guarantee eligibility or the same price for your services.
Illustrative quote	A price for the example and assumptions given.	Does not forecast another business’s premium.

Check whether the figures concern quotes or purchased policies. Do not assume a number is an average if its headline and footnote describe different measures.

Check the profession and policy behind the number

Check:

• the services, customer group and locations included;
• the period when prices were collected;
• whether the figures describe quotes or purchased policies;
• whether the price is for PI alone or a combined package;
• the limits, treatment of multiple claims, defence costs and excesses;
• important exclusions and additional cover;
• cover for previous work and relevant dates; and
• payment basis, tax inclusion and charges.

A recent article review date is not the period when prices were collected. If these details are missing, the figure may be less useful for your budget.

The headline limit is only one part of the cover. Two quotes can show the same amount while addressing different services, claims or costs.

The premium is the price of the insurance. The cover limit is the relevant maximum the insurer will pay under the terms. The excess is your contribution to a claim where required.

Keep the excess separate from the annual premium budget: it is a potential contribution, not a guaranteed yearly bill. Check affordability and requirements before changing a limit or excess.

Use this table to compare the terms behind the price.

Feature	What to check
Activities and insured businesses or people	Confirm the services and responsibilities included.
Per-claim or aggregate limit	Check whether the limit applies to each claim or is an aggregate: a total limit shared across claims during the policy period.
Related claims	Check whether linked allegations are treated as one claim.
Defence costs	Confirm whether legal costs count towards the limit or are paid in addition, and on what conditions.
Excess	Check how much your business must contribute. Confirm whether the excess applies to defence costs and how it applies to related claims.
Exclusions and additional cover	Compare restrictions and extensions affecting your work.
Countries and courts	Confirm where the work and legal proceedings are covered.
Earlier work and reporting	Compare the dates and conditions for claims or potential problems.
Package basis	Check whether the price is for PI alone or includes other types of cover.

Do not assume every PI policy covers cyber incidents, intellectual property disputes, contractual promises, unpaid invoices or project overruns. Ask how the offered wording treats the work and loss involved.

A higher limit does not mean a proportionate price increase

Changing the limit may change the price, but there is no fixed relationship that applies to every quote. A provider’s example does not predict the difference for your business.

Compare otherwise similar written offers. Our guide to how much professional indemnity cover you need explains choosing a cover limit. Read about limits and excesses and business insurance exclusions when assessing other differences.

Compare which earlier services are covered, the relevant dates and any changed conditions. A new policy does not automatically protect every previous project or preserve identical terms.

Claims-made cover and notification

PI is commonly arranged on a claims-made basis. When a claim is first made against you matters, alongside reporting deadlines and the policy’s other conditions. Check requirements for claims and problems that could lead to a claim, often called “circumstances”.

A policy held when the work was done will not necessarily respond to a claim first made after expiry, although some policies can respond to later claims arising from circumstances properly notified during the earlier period. Our guide to claims-made and claims-occurring insurance explains the detail.

Check the policy wording to understand which cover may apply. Follow its notification procedure promptly, even if you dispute the allegation. Do not wait for court proceedings or a formal demand if earlier reporting is required. Buying a new policy does not automatically insure an emerging problem.

Retroactive dates and switching insurer

The retroactive date determines how far back eligible work can go under the policy. It may be called a previous work date in your documents. It is different from the current policy’s start date: cover for earlier work does not mean the policy itself began earlier.

Compare:

• the retroactive date;
• the earlier services included; and
• changed exclusions or reporting conditions.

Before switching, confirm that the replacement provides the cover you need for previous work.

Stopping work and run-off cover

Run-off cover concerns later claims about completed work, subject to the arrangement’s terms. Investigate it where relevant and available before cancelling between contracts or when the business stops. A later claim or contractual or professional requirement may still need attention.

The period and price depend on your business and the cover offered. Read about retroactive dates and run-off cover before making changes.

Check whether the monthly figure is an actual payment offer or an annual price divided by 12. The latter is a monthly equivalent, not necessarily an available payment plan or a total including instalment charges.

Use this table to identify the basis.

Presentation	What to check
Annual payment	Premium, applicable fees and total payable for the stated period.
Monthly equivalent	Whether it divides the annual price by 12 and which charges it excludes.
Actual instalment offer	Initial payment, number and amounts of later payments, charges and full total.

Record:

• the initial payment, including any deposit;
• the number and amounts of later payments;
• fees or interest;
• whether amounts include tax; and
• the total payable.

Check that the schedule agrees with the total without counting a deposit or charge twice. Do not assume twelve equal payments, universal interest charges or a fixed saving from annual payment.

Simply Business currently states that monthly instalments involve interest. Check the payment schedule, charges and total payable for your actual offer.

Our business insurance cost guide covers the wider budget and cash flow across different types of cover.

Use this final checklist alongside the terms and previous-work checks above:

1. Give accurate details of your services, income, claims history and known problems.
2. Check client and applicable professional requirements.
3. Compare the services, countries and courts insured.
4. Review the terms in the same-limit comparison table.
5. Confirm cover for previous work before changing arrangements.
6. Separate PI-only prices from combined-package totals.
7. Compare payment totals and ask the provider to explain unresolved differences.

Do not hide services, clients, countries or known problems. A higher excess, lower limit or insurer switch does not guarantee a saving.

Check what differs and whether it matters to your business. Our guide to comparing business insurance quotes explains the fuller process.

Your price may change because services, income, projects, clients, countries, claims information or insurer pricing have changed. Limits, selected sections and payment terms can also differ.

Compare the renewal and previous documents, and ask the provider what explains the new price. Keep the previous-work checks above in mind before switching or cancelling. Our business insurance renewal guide provides the complete review process.

Have these details ready when comparing quotes through Simply Business. Follow the actual application and clarify any description that does not fit your work.

• Business details and all professional services, including advice, implementation, training or design where undertaken.
• Fee income, turnover and other business figures requested.
• Client sectors, projects and contractual insurance requirements.
• Overseas work, locations and relevant courts or jurisdictions.
• Employees, associates and outsourced-service arrangements.
• Claims history and known problems that could lead to a claim.
• Required limit.
• Existing cover, retroactive date and preferred start date where relevant.
• Other types of cover being considered.

Business insurance requires a fair presentation of the risk. This generally means clearly disclosing material information the business knows or ought to know. Or, failing that, give enough information to alert the insurer that it needs to ask further questions.

Material information could influence whether a prudent insurer accepts the risk and on what terms. Answering the application questions alone may not be enough.

Ask the broker or insurer if you are unsure what to disclose.

Requesting a quote does not start insurance. Confirm cover and its start date before relying on it.