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.

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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.

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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.

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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.

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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.

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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.

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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.

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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.

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