Does making a claim increase your PI premium?
Reviewed by Matthew Bartlett, Director, Apex Insurance Brokers Limited · Last reviewed 2026-08-05
Professional indemnity (PI) insurance is priced on risk, and an insurer's best guide to future risk is what has actually happened in your business. So a claim, or even a circumstance notified but not yet a claim, becomes part of the picture underwriters look at each renewal. But "made a claim, premium goes up" is too simple. The effect depends on far more than the fact a claim exists.
How claims history is rated at renewal
When you renew, your broker presents an updated proposal and, on most PI wordings, a claims experience summary covering the past several years. Underwriters read this alongside your fee income, discipline and the work you actually do. The claims record is one input among several, not a standalone verdict.
What matters is the story the record tells. One isolated matter with a clear, one-off cause reads very differently from a run of similar complaints that suggests a process problem. Underwriters are pricing the chance of the next claim, so a pattern moves the premium far more than an incident.
What underwriters actually look at
Several factors shape whether, and by how much, a claim affects your renewal:
- Frequency vs. severity. A single moderate claim is read differently from several small ones. Repeated claims of any size can signal a systemic issue and weigh heavily.
- Cause of the claim. A genuine one-off error is viewed more favourably than something pointing to how the firm routinely operates.
- Open or closed. An unresolved claim with an uncertain final cost creates more uncertainty, and underwriters price uncertainty. A closed matter with a known outcome is easier to rate.
- Reserve and paid amounts. The scale of what the insurer has paid or set aside matters more than the count of claims.
- Time since the claim. Older matters carry less weight as clean years accumulate behind them.
- Remedial action. Evidence that you changed a process, added a review step or tightened engagement terms can offset an underwriter's concern.
Two firms with an identical-looking claim can therefore see very different renewals, because the surrounding detail differs.
Claims aren't the only thing moving your premium
It is easy to blame a claim for a higher renewal when other drivers are also at work. PI premiums move with your fee income, the mix and risk of the work you do, your chosen cover limit and excess, and the wider PI market for your profession. In a hardening market, premiums can rise even for a firm with a spotless record. Isolating the claim's real contribution is exactly where a broker earns their keep.
| Driver | Effect on premium |
|---|---|
| Claims history | More weight on pattern and severity than on a single event |
| Fee income | Higher turnover generally means higher exposure and premium |
| Type of work | Higher-risk services attract higher rates |
| Cover limit & excess | Higher limit or lower excess increases premium |
| Market conditions | Can move premiums up or down regardless of your record |
If you are weighing a higher or lower limit, common options are £1m, £2m or £5m, and the right level depends on your contracts and profession rather than your claims record alone. Compare cover options with Apex.
Why notifying a circumstance still matters
Most PI policies are written on a "claims made" basis, meaning the policy in force when a claim or circumstance is notified responds, not the one in force when the work was done. That makes prompt notification a condition of most wordings. Some professionals delay reporting a circumstance for fear it will raise their premium. This is a false economy: failing to notify when the policy requires it can leave a genuine future claim uninsured, which is far costlier than any premium movement. Notify properly and let the cover do its job.
Renewal coming up, or worried a claim will hit your price? We'll place your risk with insurers who understand your profession.
Get a PI quote →How a broker limits the impact of a claim
You cannot undo a claim, but how it is presented at renewal is not fixed. A good broker helps in several practical ways:
- Context for the underwriter. Explaining the cause, the resolution and the steps you have taken since so the claim is not read at face value.
- Market spread. Approaching insurers whose appetite fits your profession and claim type, rather than accepting your existing insurer's number.
- Structuring the cover. Reviewing limit and excess so you are not overpaying for cover you do not need, or exposed by cover you do.
- Timing and evidence. Presenting a complete, well-documented submission early, which underwriters consistently reward over a rushed one.
Because underwriters weigh remedial action, the firms that come through a claim best are usually those that can show what changed afterwards, and whose broker puts that in front of the market clearly.
Common questions
Will one small PI claim always raise my premium?
No. A single, low-value, closed claim with a clear one-off cause may have little effect, especially if the rest of your record is clean and you have made improvements since. Frequency and severity carry more weight than a single event.
How long does a claim affect my premium?
PI proposals typically ask about several past years of claims, so a claim stays visible for that window. Its influence generally fades as clean years accumulate behind it, though a large or open claim can weigh longer.
Should I avoid claiming to protect my premium?
No. Most PI policies require you to notify claims and circumstances promptly, and failing to do so can void cover for that matter. The cost of an uninsured claim far outweighs any premium saving. Notify as required and let your broker manage the renewal.
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.