What is professionals' insurance?
Professionals' insurance is a bundle of business covers designed to protect individuals who provide services, advice, or intellectual expertise. At the heart of it is professional indemnity insurance, which responds to claims that your advice, work, or recommendations caused financial loss to a client.
Other covers can be added to match how and where you work: public liability, legal expenses, and electronic equipment protection are common choices.
Why is professional indemnity insurance important?
If a client believes your advice or service has caused them a loss—financial, reputational, or operational—they might seek compensation. Professional indemnity insurance covers legal costs and potential payouts so that a claim doesn’t put your business at risk.
It also provides reassurance to clients. In many sectors, having PI insurance is not just sensible, it’s expected.
Example scenarios:
- A marketing consultant delivers a campaign that leads to reputational damage for the client.
- An HR adviser provides guidance that results in a mishandled termination and tribunal claim.
- A trainer produces a report with inaccurate information, leading to poor strategic decisions.
What else does professionals' insurance include?
Depending on your work, you might also want to include:
- Public liability insurance—if you host meetings, give talks, or interact with clients in person, this protects against injury or property damage claims.
- Legal expenses insurance—for things like contract disputes, tax investigations, or debt recovery.
- Electronic business equipment—to cover laptops, tablets, phones or other essential tech against theft, loss, or accidental damage.
- Employers' liability insurance—legally required if you employ staff, even part-time or temporary.
Who needs professionals' insurance?
Any individual or small business offering professional services can benefit. This includes, but is not limited to:
- Business consultants and advisers
- HR consultants and other employment specialists
- Trainers and coaches
- Designers and marketing agencies
- IT professionals and software developers
- Wellness and therapy providers
- Property managers and estate agencies
