How much does professional indemnity insurance cost in the UK?

Professional indemnity insurance is priced on judgement, not a rate card — which is why two consultants with identical turnover can be quoted figures that differ by a factor of four. Understanding what underwriters are actually looking at is the difference between accepting a renewal and negotiating one.

The short answer

A sole-trader consultant with modest turnover and a £250,000 limit typically pays somewhere in the region of £15.00 to £40.00 per month. A small design, marketing or IT firm on a £1m limit is more commonly in the £50.00 to £150.00 per month range. Regulated professions — accountants, financial advisers, surveyors, architects — and anyone doing high-value construction or financial work sit materially higher, often several thousand pounds a year. These are indicative figures; PI is individually underwritten and your quote depends on the factors below.

The six factors that set your premium

• Profession and activities: The biggest single driver. A copywriter and a structural engineer represent completely different loss potential. Underwriters rate on what you actually do, not your job title — which is why a precise description of your services matters.
• Fee income (turnover): PI is largely rated on turnover, because fee income proxies for the volume and value of work at risk. Growing fast? Expect the premium to grow with you.
• Limit of indemnity: Moving from £250k to £1m rarely quadruples the price — higher layers are proportionally cheaper. Doubling your limit often adds 30–50%, not 100%.
• Claims and circumstances history: One notified circumstance, even without a payment, affects pricing for years. Full disclosure is non-negotiable.
• Client mix and contract values: Working for large corporates, financial institutions or the public sector, or signing contracts with uncapped liability, pushes the price up. So does US or Canadian exposure — many wordings exclude it outright.
• Retroactive date: A retroactive date going back ten years covers a decade of past work and costs more than “inception only” cover. It is almost always worth having — see our retroactive dates guide.

Why cheap PI is often the wrong PI

Low-cost online PI is usually achieved by narrowing the wording. Common trims: defence costs sitting inside the limit rather than in addition, aggregate limits instead of any-one-claim, tight activity definitions that only cover part of what you do, and inception-only retroactive dates that leave every project you completed before this year uninsured.

A £1m aggregate limit with costs inclusive can, after a single defended claim, leave you with far less than £1m of protection for the rest of the year. That is a very different product to a £1m any-one-claim policy with costs in addition — and the price difference is often modest.

How to bring the premium down honestly

Present the risk well. Underwriters reward clarity: a clear description of services, written contracts with liability caps, documented sign-off procedures, and evidence you don’t take on work outside your competence. Firms that use standard terms of engagement with a liability cap tied to the fee are consistently cheaper to insure than firms working on emails and handshakes.

Other levers: paying annually rather than monthly, consolidating PI with your other business covers, and reviewing your declared turnover if a large one-off project has inflated it. What doesn’t work is guessing your turnover downwards or describing your services vaguely — both create the conditions for a declined claim.

When the market gets difficult

Certain activities are hard to place: cladding and fire safety work, financial advice, medical and cosmetic services, anything touching cryptocurrency, and firms with recent claims. In these areas the insurer that quoted you last year may withdraw entirely. A broker with access to specialist and Lloyd’s markets matters far more here than a price comparison.

Premier Insurance has arranged professional indemnity cover since 1983 for consultants, agencies, IT firms, engineers, surveyors and regulated professionals. We read the wording, not just the price — and we’ll tell you plainly if your existing cover is already competitive.

Related professional-indemnity insurance guides

• What limit of indemnity do I actually need?
• Professional indemnity vs public liability: what's the difference?
• Retroactive dates and claims-made cover explained
• Do I need run-off cover when I close or sell my business?
• Professional indemnity for consultants and contractors

Speak to a UK insurance broker

Premier Insurance has been arranging UK professional-indemnity insurance since 1983. We are FCA regulated, BIBA members, and place cover with 200+ insurers including Lloyd's of London. Call 020 8908 2426, WhatsApp 07728 305383, or email hello@premier-insurance.co.uk. See our professional-indemnity Insurance page for full cover details.