*10% of our customers paid this or less between July and December 2025.
What is professional indemnity insurance?
It helps protect your business if a client claims they’ve suffered a financial loss, as a result of advice you’ve given, or because of an error, omission or the service that you’ve provided. With professional indemnity insurance, you’re covered for the cost of legal fees, defence expenses and compensation payments if a claim is made against you, and you’re found to be negligent. This can help protect your business from potentially significant and unexpected costs.
If you’re unsure whether professional indemnity insurance applies to your business or you want to understand it in more detail, our guide on what is professional indemnity insurance, explains how it works and who typically needs it.
What does Professional Indemnity Insurance cover?
What’s covered:
PI Insurance covers you against claims arising from a breach of your professional duty. This type of cover can help if a client believes you failed to perform your responsibilities correctly, resulting in them suffering a financial loss. If a claim is made against you, the policy covers the settlement and defence costs, including the legal costs associated with defending yourself, as well as any settlement or damages you may be required to pay, provided the claim falls within the policy's coverage terms.
Breach of confidentiality
Cover relating to a mistake or unintentional breach of confidentiality. You’re covered for the costs of defending yourself, and any damages.
Breach of copyright
Cover if a claim is made against you for unintentionally using someone’s intellectual property without permission.
Defamation
Protection from compensation claims and legal costs, if you’ve been accused of libel or slander in relation to your business.
Loss of documents
If documents in your care are lost or damaged, we’ll pay for the cost of replacing or restoring them.
What is not covered:
Bodily injury
PI insurance primarily protects against financial losses from professional mistakes. It generally does not cover claims related to bodily injury unless the injury results directly from a breach of your professional duty.
Employee claims
Claims made by employees for injury, illness or loss connected to their work aren’t covered under professional indemnity insurance. Employers’ liability insurance is required to cover these risks.
Fines, penalties and contractual liabilities
Professional indemnity insurance is intended to respond to negligence. So, any fines, penalties and liabilities you’ve agreed to under a contract, where there would be no legal liability otherwise, aren’t covered.
Deliberate acts or omissions
This does not cover claims from harm caused by you intentionally doing something wrong or acting with malicious intent.
Construction or installation
This policy excludes claims that arise from physical work or manual labour.
Is professional indemnity insurance required by law?
Unlike employers’ liability insurance, professional indemnity insurance isn’t a legal requirement. However, a number of professional organisations, including chartered bodies require this as a condition of membership, for legal or compliance reasons. Some clients may also require this as proof of professionalism.
How much professional indemnity insurance do I need?
The amount of professional indemnity insurance you need will depend on the type of work you do and the potential financial impact of a mistake. AXA policies typically offer cover levels up to the amount of £5 million*, but the right level for your business will vary.
*Please keep in mind that professional indemnity cover limits may vary depending on your occupation and individual circumstances. If you're a member of a chartered body, you should check what the minimum requirements are.
Professional indemnity insurance can be an important safeguard if your business provides professional services, including:
- You provide advice or consultancy: A client could claim compensation if they suffer a financial loss due to incorrect advice or an error in your work.
- You provide an expert service: This includes mistakes in designs, plans, calculations or professional recommendations.
- You handle client information or intellectual property: Claims can arise if data is accidentally disclosed or a client’s legal rights are infringed.
- A professional body or industry association requires it: Many regulated professions make professional indemnity insurance a condition of membership.
- A client insists on it: Some clients will require proof of professional indemnity insurance before agreeing to work with you.
How much does professional indemnity insurance cost?
The cost of professional indemnity insurance can vary depending on your business and the type of work you do. Prices could start from £64* a year, but the amount you pay will be based on your individual circumstances and level of risk.
*10% of our customers paid this or less between July and December 2025..
Factors that can affect the cost of your professional indemnity insurance include:
Your occupation
Your chosen level of cover
The excess amount you choose
If you want to cover your previous work*
The type of clients you work with and the projects you undertake
Your claims history, if applicable
Any added additional options
*For some occupations, or for members of a chartered body, this may be a requirement.
Choosing the right level of cover is about balancing cost with protection. Having too little cover could leave your business exposed, while the right policy can help protect you from potentially significant legal and compensation costs.
Who needs professional indemnity insurance?
Professional indemnity insurance isn’t a legal requirement for most businesses, but it can be important for a wide range of professions. If a client could suffer a financial loss because of your advice or services provided, professional indemnity insurance is worth considering.
Some of the occupations that commonly take out professional indemnity insurance include:
Consultants
If a client acts on your professional advice and it leads to a financial loss, they could make a claim against your business. This applies to a wide range of consulting professionals, including IT consultants, legal consultants, marketing consultants, and HR consultants.
Telecommunications consultants
If incorrect specifications, installation advice or planning errors lead to service disruption or financial loss.
Accountancy
Can protect against claims of negligent errors in financial advice and reporting, covering legal costs and damages.
Architects
For design flaws or omissions that cause financial loss or safety issues for clients.
Property surveyors
Protects against claims of negligence or errors, covering legal costs and damages.
IT contractors
In case an error in your work causes a system failure, data loss or disruption that impacts a client’s operations.
Software developers
In case bugs, coding errors or missed requirements cause software to fail or not perform as intended.
Web designers
In case a website error, missed functionality or accessibility issue leads to lost revenue or reputational damage for a client.
Training
If training materials, guidance or advice are relied upon and don’t meet a client’s needs or expectations.
These examples aren’t exhaustive. Many other professions, particularly those providing advice, design, consultancy or specialist services, may also benefit from professional indemnity insurance.
Can’t see your occupation on the list above? No problem – have a look at our handy occupation A-Z guide to see what cover we can offer for your occupation.
What’s the difference between professional indemnity and public liability insurance?
The main difference between professional indemnity and public liability insurance is the type of claim they cover.
- Professional indemnity insurance covers claims for financial loss caused by your advice, services, designs or professional recommendations.
- Public liability insurance covers claims for accidental injury or property damage to third parties, such as customers or members of the public, arising from your business activities.
Many businesses choose to have both types of cover in place, as they protect against different risks.
What’s the difference between professional indemnity and employers’ liability insurance?
The key difference between these policies is who is protected.
- Professional indemnity insurance protects your business if a client claims they’ve suffered a financial loss due to your work.
- Employers’ liability insurance protects your employees, including part-time staff, trainees and volunteers, if they’re injured or become ill as a result of working for you. Employers’ liability insurance is a legal requirement for most UK businesses with employees.
What’s the difference between professional indemnity and cyber insurance?
Cyber insurance is designed to help protect your business if you experience a cyber incident, such as a data breach, hacking attack or system failure. This can include support with data recovery, customer notification and regulatory costs.
If your business handles sensitive data or relies heavily on IT systems, you may want to consider both covers.
*AXA partners with InSync Insurance to help you access cyber coverage. While AXA does not directly offer cyber insurance, our trusted partner can assist you in finding the right protection.
What other covers can I get to protect my business?
Legal expenses cover
Can help with the cost of legal advice and support for certain business disputes, such as contract disagreements, employment disputes or tax investigations.
Contents insurance
Contents insurance is designed to protect the physical assets of your business, including stock, equipment, and fixtures.
Business interruption
Following an event, business interruption is there to ensure that your business can re-open its doors. It covers your operating costs, including rent, rates, and utilities, as well as helping to pay wages and any loss of profits you may have earned.
Business equipment cover
Helps protect the tools, equipment or technology your business relies on, covering repair or replacement if items are lost, stolen or damaged.
Optional extras
Optional extras can be added to tailor your insurance policy to your business needs, depending on the risks you face, and the level of protection you want. Please note that terms, conditions, and exclusions may apply.
Getting a professional indemnity insurance quote
Getting a quote for professional indemnity insurance is straightforward, and you can do it online in just a few minutes. To provide you with an accurate quote, we’ll ask for some basic information about your business and the work you do.
You’ll usually need to tell us:
Your occupation and what you do
Your annual turnover/fee income and number of employees
Whether you want to cover your previous work
The limit of indemnity and level of excess you’re looking to cover
Details of any previous claims or circumstances you’re aware of
Once you’ve provided this information, you’ll be able to see your quote and add optional extras to suit your needs before you buy.
Professional Indemnity insurance FAQs
Our customers say...
Average rating:
stars
Based on
Our customers’ reviews, independently moderated and managed by feefo. Based on 0 total reviews.
.
What’s covered?
Find out what’s covered by AXA Professional Indemnity Insurance, so you get the protection that’s right for you.
Policy details
Find out more about our professional indemnity insurance cover in our policy summaries and policy wordings.