Consumer vs commercial PI insurance — UK 2026
‘PI insurance for consumers’ and ‘PI insurance for commercial firms’ are often used interchangeably in UK PI marketing but they mean quite different things. This page sets out the distinction and which route fits which practice.
What consumer PI is
‘Consumer PI’ typically refers to PI cover marketed at individual professionals rather than the firms they work in. Used by:
- Sole-trader consultants operating in own name.
- Individual chartered professionals with individual liability.
- Freelance advisers without a corporate wrapper.
- Contractors operating as sole traders.
Cover is in the individual's name. Consumer Insurance (Disclosure and Representations) Act 2012 applies rather than Insurance Act 2015. Lower disclosure standard, more consumer-protective claim rules.
What commercial PI is
‘Commercial PI’ refers to PI cover for firms — limited companies, LLPs, partnerships, and trading entities.
- Firm-level cover.
- Insurance Act 2015 s.3 fair-presentation duty applies.
- Firm-scale rating and cover-limit options.
- Corporate-contract compliance.
Almost all professional-firm PI is commercial PI. The default assumption when a broker or insurer talks about PI is commercial cover.
Which route fits which practice
- Sole trader operating in own name — consumer or commercial PI both possible. Commercial usually cheaper at scale, consumer route simpler at very small volume.
- Personal service company (PSC) — commercial PI in PSC name. Consumer PI not appropriate.
- Partnership / LLP / Ltd firm — commercial PI at firm level.
- Employed contractor — typically covered by employer's PI. Individual cover only where employer doesn't provide.