Is professional indemnity insurance UK a legal requirement for all businesses?

No, professional indemnity insurance UK is not a legal requirement for all businesses. However, it is a mandatory requirement for many regulated professions (e.g., solicitors, financial advisers) and is often a contractual obligation when working with clients, particularly in consulting, IT, and creative industries.

What is the difference between professional indemnity and [public liability insurance](https://focusinsurance.co.uk/public-liability-insurance)?

Professional indemnity insurance UK provides cover for claims arising from professional negligence, errors, or omissions in the advice or services you provide, leading to financial loss for a client, subject to underwriting criteria and terms. Public liability insurance, conversely, provides cover for claims for injury to third parties or damage to their property that occurs as a result of your business activities, subject to underwriting criteria and terms.

How much professional indemnity insurance UK do I need?

The amount of professional indemnity insurance UK you need depends on several factors, including your profession, the size and complexity of your projects, contractual requirements from clients, and any regulatory obligations. It's crucial to assess the potential financial impact if a claim were made against your business. A broker can help you determine an appropriate level of cover.

Does professional indemnity insurance UK cover fraud?

Generally, professional indemnity insurance UK policies do not provide cover for claims arising from deliberate fraudulent or dishonest acts committed by the insured. Such acts are typically excluded from coverage. The policy is designed to protect against genuine errors, omissions, or negligence.

What is "run-off" cover in professional indemnity insurance UK?

"Run-off" cover is a type of professional indemnity insurance UK that protects you against claims made after you have ceased trading or retired. Because PI policies are "claims-made" (meaning the policy must be active when the claim is made, regardless of when the error occurred), run-off cover ensures you remain protected for past work even when your business is no longer active, subject to underwriting criteria and terms.

Professional Indemnity Insurance UK: Who Needs It and What Does It Cover in 2026?

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