Client-requirement PI · UK

Can an employer or client require me to have PI insurance?

Reviewed by Matthew Bartlett, Director, Apex Insurance Brokers Limited (FCA FRN 724952) · Published 14 July 2026

A common question: can an employer or client contractually require you to hold your own PI insurance? This page gives the direct answer.

The direct answer

Employees are typically covered by the employer's PI. Requiring the employee to hold personal PI is unusual but not impossible.
Contractors and freelancers commonly required to hold own PI as a contractual condition — standard and enforceable.
Consultants under services agreements similarly. Contract clause standard.
Agency-supplied workers — depends on the specific arrangement.

When employers can require personal PI

Where the individual operates via a personal service company — the company holds cover, not the individual.
Where the employment agreement specifically requires it as a condition (rare but possible).
Where the individual's work is genuinely outside the scope of employer PI cover.
Where the individual holds a formal role (director, trustee, SMF-approved individual) with personal exposure.

When clients can require contractor PI

Standard practice for corporate client contracts.
Typical £1m-£5m limits.
Certificate of insurance requested as evidence.
Renewal continuity often specified.
Client may require additional-insured status.

If you can't meet the requirement

Negotiate the requirement — some clients accept lower limits or alternative structures.
Get cover in place quickly through a specialist broker.
Decline the engagement if uneconomic.
Discuss with an insurance-broker specialist for options.

Frequently asked

Can my employer require me to have PI insurance?

In principle yes, subject to the employment contract terms. Rare for regular employees who are covered by employer's PI, common for contractor arrangements.

Can a client require me to have PI even if my profession doesn't require it?

Yes. Client contracts commonly require PI cover as an engagement condition. Enforceable in most UK commercial contexts.

What if I can't afford the PI cover my client requires?

Options: negotiate the requirement down; get cheaper cover from a specialist broker; decline the engagement. Some clients accept lower limits with additional contractual safeguards.

Do agency-supplied workers need own PI?

Depends on agency arrangement. Some agencies provide cover for their contractors; some don't. Check the agency agreement specifically.

If I'm employed but do occasional freelance work, do I need my own PI?

Yes typically for the freelance activity. Employer PI covers employed work, not personal freelance activity.

Can a client require me to name them as additional insured?

Yes if the contract specifies. Additional-insured status gives the client direct claim rights against the insurer. Discuss with broker before agreeing.

What if I'm an appointed representative of an FCA-authorised firm?

AR firms typically covered by principal firm's PI arrangement. Own cover not usually required. Confirm with the principal.

Can a public-sector client require higher PI cover?

Yes and common. NHS, councils, government departments often require £5m-£10m minimum with additional insured provisions. Reflects public-sector procurement standards.

What might your PI premium look like?

A guideline range built from the premiums insurers have actually quoted on risks we handle. Pick your profession and enter a few details — it updates instantly.

Profession

Annual fee income — gross, last 12 months

Limit of indemnity

Any claims history?

Any higher-risk work? — e.g. large or overseas projects

Guideline range — this is not a quote

Choose your profession and enter your fee income to see a guideline range.

Get an actual quote →

How these figures are produced

This guide is built from Apex's own market data: the premiums insurers have actually quoted and charged on professional indemnity risks we have handled. Each night that data is aggregated into anonymised rate bands by profession, fee income and limit of indemnity. No client information is published — a band only appears where it contains at least five separate records, and unusually high premiums are excluded so a single atypical risk cannot distort the guide.

The range shown spans the typical spread of recent market outcomes for similar risks. Individual quotes can fall outside it in either direction. Figures exclude insurance premium tax at 12%.

This calculator is not a quote and is not an offer of insurance or advice. Your actual premium depends on full underwriting of your business, including your activities, claims record and insurer appetite at the time.