Do mediators and arbitrators need professional indemnity insurance?

Reviewed by Apex Insurance Brokers · Last reviewed 2026-08-05

Mediation and arbitration are dispute-resolution services built entirely on professional judgement. There is no product to recall and no premises to insure — the exposure is your handling of a case and the advice, process and neutrality you bring to it. If a party later claims that failure caused them financial loss, professional indemnity (PI) insurance is what responds. This page explains exactly when PI is needed and why.

Is PI a legal requirement?

No. Acting as a mediator or arbitrator is not a reserved legal activity, and neither role is authorised or regulated by the Financial Conduct Authority for the dispute-resolution work itself. There is no statute that says you must hold PI to mediate or arbitrate.

That said, "not legally required" is very different from "not needed". The requirement almost always arrives through three routes instead: the bodies you register with, the panels and courts you take appointments from, and the contracts your clients ask you to sign.

Membership and registration requirements

This is where PI becomes non-negotiable for most practitioners. The main UK registration bodies treat cover as a condition of being listed:

• Civil Mediation Council (CMC) — to be a CMC Registered Mediator you must hold professional indemnity insurance appropriate to your practice. The CMC register is what many clients, solicitors and courts use to find a mediator, so being on it matters commercially.
• Family Mediation Council (FMC) — FMC Registered Mediators (including those working towards or holding accreditation) are required to carry PI cover. This is essential for family mediators wanting to be recognised and to take publicly funded or court-referred work.
• Professional and accreditation bodies — organisations such as the Chartered Institute of Arbitrators (CIArb) set codes of professional conduct for members. Even where a body does not mandate a specific limit, holding adequate PI is expected of a competent practitioner and is often required to accept certain appointments.

If you belong to more than one body, apply the strictest requirement. Check the exact wording of your membership terms each renewal, because minimum limits and conditions can change.

Client contracts and appointments

Even outside a registration requirement, PI is frequently written into the terms of engagement. Common triggers include:

• Court and tribunal mediation schemes and appointing-body panels that list a minimum level of PI as an eligibility condition.
• Solicitor and corporate clients who instruct you on behalf of parties and expect professional advisers to carry cover as standard.
• Institutional arbitration rules and appointment terms, where the administering body or the parties' agreement may address insurance and liability.
• Framework or repeat-instruction arrangements where a written evidence of cover is requested before you are added to a supplier or neutrals list.

In these situations the client is effectively transferring risk to you and asking you to insure it. Turning up without cover can mean losing the appointment.

The specific service risk — and why immunity is not enough

The exposures for these two roles are related but not identical.

Arbitrators benefit from a degree of statutory protection. Under section 29 of the Arbitration Act 1996, an arbitrator is not liable for anything done in the discharge of their functions unless the act or omission is shown to have been in bad faith. That is a genuine and valuable shield — but it is not a reason to skip PI, because:

• Immunity does not stop a disgruntled party bringing a claim or a challenge; you may still have to defend yourself and pay legal costs, which PI can meet.
• The protection is not absolute — allegations of bad faith, or disputes over jurisdiction, fees, resignation and administrative conduct, can fall outside or test its edges.
• Challenges to awards, allegations of serious irregularity, and complaints to appointing bodies all carry cost and reputational exposure.

Mediators generally have no equivalent statutory immunity. Because the mediator facilitates a settlement that the parties themselves sign, disputes can arise over alleged breaches of confidentiality, conflicts of interest, negligent conduct of the process, or a party claiming they settled on a flawed basis. Whether or not such a claim would ultimately succeed, defending it costs money.

For both roles, the value of PI lies as much in funding the defence of an unfounded allegation as in paying a proven claim.

Mediators vs arbitrators: PI at a glance

The illustrative limits above are generic starting points only. The right level depends on your caseload, the value of the disputes you handle, and what your registration body or clients require. Tell us about your practice and we will help you set an appropriate limit.

Practical points on cover

• Match the wording to the role. If you both mediate and arbitrate — or also act as an expert, adjudicator or consultant — make sure every activity is described in your policy.
• Mind the run-off. PI is usually written on a claims-made basis, so a claim about an old case is met by the policy in force when it is made, not when you did the work. Keep cover in place, and consider run-off cover when you stop practising.
• Keep evidence handy. Registration bodies and clients often ask for a certificate; have it ready at renewal.

Common questions

Does arbitrator immunity mean I can skip PI?
No. Section 29 of the Arbitration Act 1996 limits liability but does not prevent claims, challenges or the legal costs of defending them — and it does not cover bad-faith allegations. PI helps fund the defence and any covered liability. If that sounds like your renewal, a PI broking specialist can put one presentation to several insurers rather than one at a time.

Do I need PI to be listed by the CMC or FMC?
Yes. Both the Civil Mediation Council and the Family Mediation Council require registered mediators to hold appropriate professional indemnity insurance. Check the current minimum in your membership terms.

I mediate only occasionally alongside another career — do I still need it?
If you take appointments, register with a body, or sign client terms, the same requirements apply regardless of volume. Tell your broker how you practise so the policy reflects your actual exposure.

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.