Professional indemnity insurance
from £7.42 / month
Professional indemnity insurance for self employed professional protects you and your business if you make a mistake in the course of your work or are accused of being negligent.
What is professional indemnity insurance?
If you're self employed, working either through a limited company or as a sole trader, professional indemnity (PI) is a useful legal cover.
Every business has customers and, no matter how good your services are, sometimes customer relationships can sour. Professional indemnity insurance will assist you legally and financially if your business is accused of negligence or a professional mistake by an unhappy client demanding a compensation.
Imagine a client is making financial demands and threatening you with legal action. With Suited professional indemnity cover in place, your legal costs associated with the claim (early advice or defence) and any possible compensation are covered.
Suited PI insurance also offers 'retroactive cover'. In other words the policy can extend to cover your past work. For example your client contract says you must have professional indemnity insurance but you simply forgot to arrange it. It is possible to buy Suited PI insurance with a retroactive date provided you're not facing a claim situation when arranging cover. Another situation when you might need Suited PI to cover your past work is when you're switching insurers.
What does professional indemnity insurance cover?
The main purpose of professional indemnity insurance for self employed professionals is to cover financial losses suffered by your client due to professional negligence, errors, or omissions made by you during the provision of your professional services.
In addition the cover also provides legal defence. In other words you won't have to hire your own solicitor and pay for it. Your professional indemnity insurance will do that for you and pay for all the costs.
Professional indemnity insurance for self employed professionals differs from provider to provider. This is what Suited PI offer:
Suited professional indemnity
The PI section provides you with a dedicated law firm specialising in commercial disputes. The cover is backed up by an insurer with a superior rating and a reputation for paying claims.
Up to £2,000,000 cover
Zero excess
Dedicated legal team
A+ insurer
Competitive prices
Includes Business Legal Protect
Business Legal Protect is an additional legal protection for tax and other legal issues you or your business may face: unpaid invoices, IR35 investigation, HMRC disputes, reputational damage, and more.
£100,000 legal expenses cover
Free tax & legal advice
Negative PR assistance
Help with unpaid invoices
Who needs professional indemnity insurance?
If you are in the business of providing your expertise and skill to solve your clients' problems, you should protect yourself with PI cover whether or not required by the contract.
Often self employed individuals ask: "Do I need professional indemnity insurance? Is it worth the spend?".
From time to time everyone has to deal with an upset client and while most conflicts get resolved amicably, you don’t want to leave yourself exposed to the costs of a possible claim.
Many self-employed and freelancers cancel their PI cover as soon as a client contract is fulfilled to save on the insurance premium. However, this could be a false economy. Sometimes it takes time to discover mistakes and a client may come after you years after you finished your contract with them.
Professional indemnity insurance works on a claims made basis. What that means is that if you don’t have PI insurance in place when the claim is made, you are not protected even if you had PI cover during the contract with the client.
How much professional indemnity insurance do I need?
When selecting a PI limit you should consider whether the contract with your client asks that you have PI cover in place. If so, the contract usually states the required limit.
However, you should also take into account the level of responsibility you had or will have for the work delivered and any possible financial consequences as a result of your mistake.
For example if you are an IT contractor who works under the supervision of someone else and you only deliver precisely scoped tasks signed off by your supervisor then the risk of being sued, unless you are negligent, is quite low. On the other hand an IT architect responsible for designing a complex solution for a financial institution is facing a much higher risk of a legal action if something doesn’t go to plan.
Prices start from
Suited professional indemnity insurance can be purchased on its own or with other insurances added on. Limits start at £250,000 and our price includes Business Legal Protect cover as standard.
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Common questions
Is professional indemnity insurance compulsory?
Professional indemnity insurance isn't required by law but certain professional bodies and regulators insist that their members hold PI cover. And then there are client contracts which often include a condition that the supplier (you) has PI cover in place.
Is professional indemnity insurance tax deductible?
Yes. The whole professional indemnity insurance premium including IPT (12%) is an expense to your business and can be deducted from your revenue. However, Insurance Premium Tax (IPT) is not the same as VAT.
Does professional indemnity insurance cover employees' work?
Yes if they are bonafide employees of your business.
Is professional indemnity insurance the same as errors and omissions?
Errors and omissions insurance is another name for professional indemnity insurance. The two cover similar risks but remember exact conditions vary from policy to policy.
Is professional indemnity insurance the same as directors and officers?
No. Professional indemnity protects you against claims by dissatisfied clients. Directors & officers insurance (D&O) is a legal expense cover to fund the defence costs for a director who is accused of mismanaging a company.
Does professional indemnity insurance cover subcontractors?
SUITED professional indemnity does cover your subcontractors. You should always have a written contract in place with the scope of the work clearly defined and check the subcontractor is also insured for the type of work that they’re taking on.
How much does professional indemnity insurance cost?
Prices with Suited start at a few pounds a month. In order work out your price Suited looks at your profession category and the total business turnover.
Do I need professional indemnity insurance?
Those providing expertise and skill to solve clients' problems are likely to benefit. The list of professions is wide across a number of industries, some examples are bookkeepers, counsellors, IT contractors, and graphic designers among others.
Other covers we offer
Our insurance starts with professional indemnity, a must have for professionals who give advice or provide a service as part of their business activity. You can add to your policy other useful covers as needed.
The fast and hassle free way to get business insurance for small professional outfits.