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Professional indemnity explained
An apology is a statement of regret about what happened; an admission of liability is an acceptance that you are legally responsible for the client's loss. The difference matters because most PI policies prohibit admissions and offers without insurer consent.
Part of: Professional indemnity insurance
In short
You can usually apologise to a client without affecting your PI cover. In England and Wales, section 2 of the Compensation Act 2006 says an apology does not of itself amount to an admission of negligence, and the Apologies (Scotland) Act 2016 stops most apologies being used as evidence of liability. What can prejudice cover is admitting liability, offering compensation, refunding fees or promising to fix a problem at your cost without insurer consent. Notify your insurer first and agree the wording, especially where a duty of candour applies.
Saying sorry is not the same as admitting liability, and the law in both England and Wales and Scotland recognises the difference. What can cause problems with your PI cover is going further: accepting that you were negligent, promising to pay, agreeing to waive or refund fees as compensation, or agreeing how a mistake will be put right at your cost, without your insurer's consent.
Most PI policies contain a condition that you must not admit liability, make an offer, promise or payment, or settle a claim without the insurer's written agreement. If you breach it, the insurer may be able to reduce or decline cover, depending on the wording and the prejudice caused. The safe route is to notify first, then agree the wording of any apology with your insurer or broker.
| Jurisdiction | Rule | What it means |
|---|---|---|
| England and Wales | Compensation Act 2006, section 2 | "An apology, an offer of treatment or other redress, shall not of itself amount to an admission of negligence or breach of statutory duty." |
| Scotland | Apologies (Scotland) Act 2016 | In most civil proceedings, an apology is not admissible as evidence of anything relevant to deciding liability and cannot be used to the maker's prejudice. Some proceedings are excepted, including defamation and certain professional regulatory hearings. |
| Legal Ombudsman | Guidance on remedies | States that an apology will not be treated as an admission of liability under its scheme rules. |
Note the words "of itself" in the English provision. An apology protects you only so far as it is an apology. A message that says "I am sorry, I gave you the wrong figure and I will cover your loss" contains an admission and an offer, and the statute does not neutralise those parts. The Scottish Act defines an apology as a statement of sorrow or regret about an act, omission or outcome, including an undertaking to look at what happened to prevent a recurrence.
Look for these conditions in your wording, and see insurer conduct of claims and consent to settle:
Some professionals are required to be open about mistakes, which can feel like it clashes with the insurer's no admissions rule.
Being candid about the facts is compatible with protecting your cover. You explain what happened, say you are sorry, and tell the client what happens next. You do not give a legal view on whether you were negligent or commit to compensation without insurer consent. Telling your insurer at the same time protects both duties.
| Usually fine (after notifying) | Avoid without insurer consent |
|---|---|
| "I am sorry this has happened and for the worry it has caused." | "This was our negligence." |
| "I have found an error in the figures and I am explaining what it was." | "We will compensate you for any loss." |
| "I have notified our insurers, as we are required to." | "We will waive our fees to make up for it." |
| "We are looking at how this happened so it does not happen again." | "We will pay to have it corrected by someone else." |
| "Our insurers or their solicitors will be in touch." | Agreeing a figure, a timetable for payment or a standstill agreement. |
These examples are illustrative and not based on real cases.
Example 1: the accountant. An accountant spots a missed filing deadline that triggered a penalty. She notifies her insurer, then writes to the client apologising, explaining the error and saying the insurer will be in touch about the penalty. Her apology is protected and her cover is preserved.
Example 2: the architect. On site, an architect tells a client "that's my mistake, I'll pay for the steel to be replaced". The insurer later questions whether the promise prejudiced its position. A neutral apology and prompt notification would have avoided the argument.
Example 3: the solicitor. A solicitor misses a limitation date. Paragraph 7.11 requires her to tell the client promptly. She notifies her insurer the same day and agrees a factual letter with the insurer's panel firm, meeting both duties.
If the client has already sent a letter of claim, read what to do after a letter of claim. For cover, see professional indemnity insurance.
Apex arranges professional indemnity insurance for UK firms; a broker reads every enquiry.
A genuine apology on its own is unlikely to, and in England and Wales the Compensation Act 2006 says an apology does not of itself amount to an admission of negligence. Problems arise when you admit liability, offer compensation or agree to put things right at your cost without insurer consent, which most PI policies prohibit. Notify first and agree the wording.
You can usually explain factually what went wrong, and some professions must do so under a duty of candour. What you should avoid, without insurer consent, is stating that you were negligent or legally liable, or committing to pay. Check whether your policy has a carve-out for regulatory disclosures.
Treat this carefully. A refund offered to compensate for an error may count as an offer or admission under your policy conditions. Fee refunds are also often not covered by PI. Speak to your broker before offering one, especially if the client has suggested they have suffered a loss.
In most civil proceedings in Scotland, an apology cannot be used as evidence of liability or to the maker's prejudice. Some proceedings are excepted, including defamation and listed professional regulatory hearings. It does not change your PI policy terms, so the insurer's admissions and consent conditions still apply.
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Get a PI quote Request a callbackApex Insurance Brokers Limited is authorised and regulated by the Financial Conduct Authority. Registered in England and Wales, company number 07014570. This page is general information, not advice on your individual circumstances, and it does not guarantee that cover will be available or on what terms.
