What is professional indemnity insurance?
In the UK, professional indemnity insurance is a type of cover designed to protect your business if you provide advice, designs, specifications or instructions as any part of your job. If a client claims that your advice or services have caused them a financial loss and you’re found to be at fault, professional indemnity insurance will protect you.
It covers the cost of legal defence and compensation if required. It also provides protection for your previous work completed, as claims can be made a long time after the work has been carried out, helping to safeguard your business against unexpected costs.
Who needs professional indemnity insurance?
If you are a business that provides professional services, recommendations, or advice, professional indemnity insurance could help protect you if a client makes a claim, and you’re proven to have been negligent. By choosing our professional indemnity insurance, you’re planning ahead, protecting yourself from any future consequences and helping your business continue in the aftermath of an unexpected claim.
When would I need professional indemnity insurance?
You may need professional indemnity insurance if a client claims that your advice, services or designs have resulted in a financial loss, leading them to take legal action. Issues around providing professional advice or design work don’t always come to light straight away, which means a claim could be made months or even years later.
That’s why you can choose cover that protects work you’ve previously completed, even after you have retired or closed your business (as long as you maintain your cover.) Professional indemnity insurance may also help you win new work, as some clients and trade bodies require you to have appropriate cover in place before they’ll work with you.
What does professional indemnity insurance cover?
The level of cover you need depends on your business, including:
- The size of your business
- The type of work you do
- The value of the contracts you take on
- Turnover/fee income
Professional indemnity insurance covers claims related to past work, so the amount of cover you choose may also depend on how long you’ve been trading and the amount of work you’ve previously done. This will depend on your specific occupation.
AXA’s business insurance can offer:
- A choice of cover levels, up to £5 million*
- Cover for defence costs – including solicitors’ fees and expert counsel
- Compensation for court attendance for you and your employees per day
*However, it's important to keep in mind that the level of cover is chosen by you, as the customer, and is not set by the insurance policy.
Optional extras:
- Legal expenses cover
- Business equipment cover
With specialist policies tailored to certain professions, such as IT, accountancy and recruitment, you can choose cover that fits the way you work.
Is professional indemnity insurance compulsory?
Professional indemnity insurance is not a legal requirement in the UK, but it is often required by professional or chartered bodies. Having this cover in place could help protect your business from significant legal and compensation costs if a claim is made against you.
If you provide professional services or advice, then professional indemnity insurance can offer valuable reassurance. Some clients will only work with businesses that have appropriate cover, so it may also help you to secure contracts. Many businesses also find it helps demonstrate professionalism and credibility, showing clients that they take their responsibilities seriously, with some organisations and regulatory bodies viewing it as a requirement.
How much does professional indemnity insurance cost?
You can protect your business with professional indemnity insurance from £68 a year*, although the exact cost will vary depending on your business.
*10% of our customers paid this or less between July and December 2025..
The price you pay will depend on factors such as:
Your occupation and your experience
The level of cover you choose
Your turnover/fee income
Your excess
Because every business is different, the quickest way to find out how much professional indemnity insurance might cost you is to get a quote online.
Protect the future of your business with professional indemnity insurance
Protect your business today with the right business insurance.
Click the button below to get an online quote. Simply enter your business details, select the cover that suits your needs, and get a tailored insurance quote in minutes.
What's covered?
Got any more questions about professional indemnity insurance? Take a look at our at-a-glance guide to what’s covered.
Professional indemnity
Protects you from compensation payments and defence costs if a client thinks you’ve made a mistake or given bad advice and makes a claim against you.
