Professional Indemnity FAQs

Questions and answers that relate to Professional Indemnity insurance, including who and what it covers. This information is provided as a guide only, and if you have any doubts or questions, please call our expert Bonds team on 020 7623 4957.

How much professional indemnity insurance do I need?

You can usually choose the amount of cover you need. The appropriate level will depend on the nature of your business.

Is professional indemnity insurance compulsory?

For some businesses, such as lawyers, accountants, financial advisors, and architects, it is a legal requirement to have professional indemnity insurance. For most trades, it is not a legal requirement. However, you may still need it.

What is professional indemnity insurance?

Professional indemnity insurance protects your business if you are successfully sued ( you dont only have to be successfully sued for the policy to pay out) because recommendations or advice you provided have resulted in financial loss for a client.

Who can buy professional indemnity insurance?

You do not have to be a business owner, a large organisation, or limited company to obtain a policy. You can buy one if you are a small business, or operate as a partnership.

Who needs professional indemnity insurance?

It’s a common misunderstanding that only certain high-profile professionals, such as lawyers or accountants, need professional liability insurance. Builders, tradespeople and those in the construction industry also need to be covered if they provide certain services.

Does professional indemnity insurance cover negligence?

If you have made a mistake or been negligent when providing services like those above, your professional indemnity insurance will provide you with insurance protection.

How to get professional indemnity insurance

You should choose a reputable insurance broker that has experience of the construction industry. Make sure you check their credibility and experience first.

When do I need professional indemnity insurance?

Typically, people will approach a bond specialist, like an insurance broker, who will request information as part of the application.