Professional Indemnity Insurance
Protect your business and defend your reputation with tailored solutions delivered by our specialist team.
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Professional Indemnity Insurance (PI Insurance) protects businesses and individuals who provide professional services including:
- Design
- Advice
- Specification
- Inspection
- Simulation & Modelling
- Testing & Validation
- Consultancy
- Analysis & Optimisation
Even the most experienced professional can make mistakes and there is also an increasing trend of spurious allegations being made, simply to delay or prevent payment of outstanding invoices. Defending claims can be very costly and Professional Indemnity Insurance ensures your business is financially protected if something goes wrong.
The policy covers legal and defence costs e.g. solicitors costs and expert witness fees, and importantly the settlement of damages either agreed between parties involved (out of court) or awarded by the courts, should the professional be deemed at fault.
Against common belief, a fee does not have to be charged for liability to exist.
In many professional sectors, holding Professional Indemnity Insurance is a regulatory requirement set by professional bodies, or it can be a contractual requirement set by customers.
Policy coverage
Whilst cover varies from sector to sector, a Professional Indemnity policy typically provides protection (including defence costs) for losses arising from
- Breach of professional duty
- Negligence, errors, omissions
- Libel, slander, defamation
- Loss of client documents
- Unintentional breach of intellectual property infringement
- Unintentional breach of confidentiality
- Any other civil liability not otherwise excluded
Professional indemnity insurance policy features*
- Claims-made basis of cover
- Flexible limits of indemnity to suit your profession and individual requirements
- Retroactive cover (protection for past contracts and liabilities subject to Insurer acceptance)
- Worldwide cover options (including USA / Canada based customers and applicable North American law – subject to Insurer acceptance)
- Run-off cover available for retired or ceased businesses.
Typical exclusions include:
- Contractual obligations which extend liability beyond reasonable skill and care at common law
- Known circumstances or claims prior to the start of any policy or policy period
- Criminal acts, fines and penalties
- Bodily injury or property damage – although this is generally provided where arising from a breach of professional duty, i.e. it’s the professional service provided that causes the claim
- Asbestos or Pollution – cover is provided by Insurers in some sectors as part of regulatory minimum cover requirements, but can also be requested and/or enhanced from Insurers where required
FAQs
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Who needs Professional Indemnity insurance?
If you provide specialist knowledge, technical expertise or guidance as a service, you will likely benefit from Professional Indemnity Insurance. Examples of sectors include:
- Architects
- Engineers
- Surveyors
- Accountants and Auditors
- Financial Services and Institutions including Financial Advisers, Insurance Brokers and Mortgage Brokers
- Contractors and Construction Professionals
- IT Consultants, Technology, Fintech and Software Firms
- Management Consultants
- Marketing, PR and Media Professionals
- Asbestos, Environmental and Health & Safety Consultants
Is Professional Indemnity Insurance required by regulators or professional bodies?
Professional Indemnity Insurance is often mandatory or strongly recommended by regulators and professional bodies, including (but not limited to):
- Financial Conduct Authority (FCA)
- Royal Institution of Chartered Surveyors (RICS)
- Institute of Chartered Accountants in England and Wales (ICAEW)
- Association of Chartered Certified Accountants (ACCA)
- Architects Registration Board (ARB)
- Solicitors Regulation Authority (SRA)
- Engineering Council UK
We can help ensure your policy meets minimum indemnity limits and policy wording requirements set by your regulator.
What limit of indemnity do I need?
This depends on:
- Regulatory requirements
- Contractual obligations
- Risk exposure
- Size of projects
We can provide options for a selection of indemnity limits typically ranging from £250,000 up to several million pounds, subject to regulatory minimum requirements.
What is a claims-made policy & retroactive date?
Professional Indemnity Insurance works on a claims-made basis, meaning it’s the policy coverage and Insurer on risk when a claim is made (received by the Insured) that responds to the allegation. This means an active policy must be in force for cover to apply, even if the business is no longer trading.
The retroactive date is the date to which cover will be provided under the policy. This is usually the date the business commenced trading or the date the first Professional Indemnity policy was purchased. For example, a retroactive date of 1st January 2020 means only professional work carried out after this date are intended for cover under the current live policy and provided the policy remains in force.
Do I need run-off cover?
Yes, if you stop trading or retire. Claims can arise years after work is completed, and run-off cover protects you against future claims. The policy will usually retain the existing retroactive date to ensure all past liabilities are covered under the run-off policy.
Why arrange your Professional Indemnity Insurance with us?
By working with Adler Fairways, you will gain:
- Support and advice from an experienced team of specialist “PI” brokers with access to market leading Insurers
- Tailored cover to meet your needs
- Competitive premiums
- Expert claims assistance
- Support with best practice and risk management process.
*This information is a general guide only. Adler Fairways will assess your requirements and recommend a bespoke range of insurance solutions to meet your needs. As part of the quotation process, we will provide full details of the specific coverage, benefits, limits, premiums, exclusions, excesses payable, and any other policy conditions that would apply to the insurance we recommend for you. We currently only offer cover to businesses registered in England, Scotland, Wales, Northern Ireland, the Channel Islands and the Isle of Man.