Do I need professional indemnity insurance?
It depends on your profession. Some lines of work require professional indemnity insurance, and may state a minimum level. These include:
Even so, if you offer expert advice or information as part of your work, professional indemnity insurance can be worth considering. This also applies if you provide these services for free, as claims can still be made against you or your business.
What happens if I can’t get professional indemnity insurance?
Some professions don’t let you trade without the right level of PI insurance. Without the required cover, you could lose your membership or face disciplinary action.
If you are finding it hard to get PI insurance, or have been refused a renewal, contact your professional body for advice. It may be able to help you get another policy or cover you until you are insured.
Is professional indemnity insurance a legal requirement in the UK?
You don’t need professional indemnity insurance by law. The only legal requirement for businesses in the UK when it comes to insurance is employers’ liability insurance. You must have this if you employ anyone outside your immediate family who is based in the UK and for any employees if it’s for a limited company.
If you use a vehicle for business purposes, you need business car insurance or commercial vehicle insurance to reflect the extra risks that come with that.
» MORE: Do I need business insurance?