CQC-Registered Providers: What Insurance and Indemnity You Need
Reviewed by Matthew Bartlett, Director, Apex Insurance Brokers Limited · Last reviewed 2026-08-05
If you deliver a regulated activity in England — a care home, domiciliary care, a clinic, a dental or aesthetic practice, a nursing agency — you must register with the CQC. Part of demonstrating you are a fit and safe provider is showing you can meet the liabilities your service might create. This guide explains how the "adequate cover" test works, which policies matter, and how to judge the right limits.
What the CQC actually requires
The framework for CQC registration is set out in the Health and Social Care Act 2008 and the associated Regulated Activities Regulations. The important point for insurance is this: there is no single, published minimum professional indemnity sum that applies across all providers. The CQC does not tell a domiciliary agency to carry £X and a surgical clinic to carry £Y.
Instead, providers are expected to hold indemnity and insurance arrangements that are adequate and appropriate for the nature of the regulated activity and the risks involved. A large residential care group and a single-handed chiropodist face very different liabilities, so their "adequate" cover looks very different too. Because the CQC's guidance and application questions are periodically updated, always check the CQC's current published registration guidance for the exact wording that applies to your service.
Two things follow from the "adequate" standard:
- The onus is on you to assess your exposure and buy cover that matches it — you cannot point to a fixed figure and assume it is enough.
- Cover that was adequate at registration can become inadequate as you grow, add services, or change your client mix. It should be reviewed at every renewal.
The core policies a CQC provider needs
Most registered providers build their protection from the same core covers. The mix and the limits depend on what you do and who you employ.
| Cover | What it protects against | Status |
|---|---|---|
| Professional indemnity / medical malpractice | Claims of negligence, error or harm arising from treatment, care or professional advice | Central to the "adequate indemnity" test |
| Public liability | Injury to a client or visitor, or damage to their property, in the course of your service | Strongly expected in practice |
| Employers' liability | Injury or illness suffered by your employees at work | Legally compulsory if you have staff |
| Abuse / physical & sexual abuse cover | Allegations of abuse by staff — a serious exposure in care settings | Often essential; check it is included |
| Management liability / D&O | Claims against directors and the entity, including regulatory investigation costs | Increasingly recommended |
| Cyber | Data breaches involving sensitive health and care records | Worth serious consideration |
Employers' liability is the one hard rule to be aware of. Under the Employers' Liability (Compulsory Insurance) Act 1969, almost every business with employees must carry it, and the statutory minimum indemnity is £5 million — though most policies are issued at £10 million as standard. If you employ carers, nurses, receptionists or bank staff, this cover is not optional.
Not sure your current cover matches your CQC exposure? We arrange professional indemnity and combined care policies for registered providers across England.
Get a PI quote →Indemnity for individual registered professionals
There is a separate legal thread that often catches providers out. Registered healthcare professionals — for example those on the registers of the NMC, GMC, GDC or HCPC — are individually required to hold an appropriate indemnity arrangement as a condition of their registration to practise. That duty sits alongside the CQC's requirement on the provider organisation.
In many businesses the provider's policy is arranged to indemnify the practitioners working under it, but this should never be assumed. If you engage self-employed clinicians, locums or associates, confirm in writing whose policy responds to a treatment claim, and make sure there are no gaps between the individual's indemnity and the organisation's cover.
How to judge "adequate" cover
Because there is no fixed figure, choosing a limit is a judgement about your worst realistic loss. Consider:
- The severity of a claim. Care and clinical treatment can lead to serious, high-value injury claims. A limit that feels generous for a low-risk activity may be thin for a service involving vulnerable people or invasive procedures.
- Your size and turnover. More clients and more staff mean more opportunities for something to go wrong. Limits should scale as you do.
- Contractual requirements. Local authority and NHS contracts frequently specify minimum limits — often at or above £5m or £10m for public and employers' liability, and a stated professional indemnity level. These contract terms can exceed anything the CQC implies.
- Claims basis. Professional indemnity is usually written on a "claims-made" basis, so the policy in force when a claim is made responds, not the one in force when the incident happened. That makes continuity of cover and run-off arrangements important if you ever stop trading.
Illustrative limits of £1m, £2m or £5m are commonly offered as options, but they are just that — options. The right figure is the one that reflects your specific service, contracts and risk appetite. A broker who understands the care and health sector can benchmark this for you rather than leaving you to guess. You can start a quote and talk it through here.
Common mistakes to avoid
- Assuming a fixed CQC figure exists. It doesn't — "adequate" is a moving standard tied to your risk.
- Leaving abuse cover out. In care settings this can be one of the most damaging exposures; check it is explicitly included, not excluded.
- Letting cover lapse or slip out of step with growth. New services, more clients or new premises change your exposure immediately.
- Not confirming who indemnifies self-employed clinicians. Gaps here surface at the worst possible moment — when a claim lands.
Common questions
Does the CQC set a minimum professional indemnity amount?
No. The CQC requires cover that is adequate and appropriate to your regulated activity rather than a fixed sum. You should set your limit against your own risk, and check the CQC's current published registration guidance for the exact wording that applies.
Is any insurance legally compulsory for a care provider?
Yes. If you employ staff, employers' liability insurance is compulsory under the Employers' Liability (Compulsory Insurance) Act 1969, with a statutory minimum of £5 million — most policies are issued at £10 million.
Do individual clinicians need their own indemnity as well?
Registered healthcare professionals must hold an appropriate indemnity arrangement to practise. Sometimes the provider's policy covers them, but you should confirm this in writing rather than assume it.
Apex Insurance Brokers Limited is authorised and regulated by the Financial Conduct Authority (FRN 724952). This guide is general information, not advice on a specific policy or a substitute for your policy wording.