Cost of PI · UK

How much does PI insurance cost in the UK? A specialist broker's answer

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

The direct answer: it depends. UK professional indemnity insurance cost varies from a few hundred pounds for a small clean freelance practice to hundreds of thousands for a large complex firm. This page sets out the real ranges by sector and firm size, and the specific factors that drive the number.

Broad price ranges by profile

  1. Solo freelance consultant with clean history, £1m cover — typically low-to-mid three figures annually.
  2. Small professional firm, standard practice, £2m cover — typically low-to-mid four figures.
  3. Mid-market professional firm, £5m cover — typically mid four figures to five figures.
  4. Large firm with layered programme — five to six figures.
  5. Individual difficult-risk placement — can be materially more than these ranges.

Drivers of premium

  1. Sector. Solicitors with conveyancing, IFAs with DB-transfer, structural engineers with BSA work all attract higher rating.
  2. Turnover / fee income. Rating typically scales with revenue.
  3. Cover limit. Higher limit = higher premium, non-linearly.
  4. Claims history. Prior claims add loading; loss ratio matters.
  5. Practice mix. Higher-risk activities within a profession disproportionately drive premium.
  6. Personnel. Individual claims history follows the professional.
  7. Consumer Duty implementation for FCA-authorised firms.

Direct answer for common sectors

  1. Solicitors sole practitioner clean history: low-to-mid four figures for SRA MTC £2m per claim.
  2. Architects residential-only sole: low three figures to low four figures.
  3. Accountants ICAEW at floor: mid three figures for £100k minimum.
  4. IFA clean history no DB transfers: mid four figures for MIPRU minimum.
  5. Small IT consultancy: low three to mid three figures.
  6. Freelance consultant £1m cover: low three figures for clean-history.

How to reduce the cost

  1. Remarket properly with a specialist broker.
  2. Increase excess.
  3. Restructure aggregation position.
  4. Present the risk professionally with proper documentation.
  5. Discontinue high-rating activities where commercially viable.
  6. See our full guide on reducing PI premium.

Frequently asked

How much is UK PI insurance for a small firm?
Highly variable. Small clean-history professional firm with standard £1m-£2m cover: typically low-to-mid four figures annually. Sole freelance consultant: often lower.
Is PI insurance more expensive for some professions?
Yes. Solicitors, IFAs, structural engineers, valuation surveyors typically face higher rating than architects, IT consultants, management consultants due to historic claim frequency and severity.
Does PI cost scale with firm turnover?
Generally yes. Rating typically scales with fee income and cover limit. Doubling turnover doesn't usually double premium, but is a material factor.
How much does adding £1m more to my cover limit cost?
Highly variable but often modest at the upper layers. Layered programmes are typically cheaper per additional pound of cover at higher layers than adding to primary.
Do claims make my PI more expensive?
Yes, materially. A single small paid claim may add 15-30% to a clean-market renewal. Serious loss with poor remediation may double or triple the premium.
What's the cheapest UK PI insurance?
Direct writers and online quote engines can appear cheaper for clean simple profiles. Cheap now often costs more at claim time — specialist brokers typically add material value for professional-firm PI.
Should I choose the cheapest quote?
Not necessarily. Cheapest quote may have restrictive wording, weak claims handling, or exit-market insurers. Compare on wording as well as price.
Can I pay PI in monthly instalments?
Usually yes. Most UK PI insurers offer monthly payment options, often with small credit charge. Discuss with broker at binding.

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