How much is professional indemnity insurance for consultants?

Reviewed by Matthew Bartlett, Director, Apex Insurance Brokers Limited · Last reviewed 2026-08-05

"How much" is the first question most consultants ask, and understandably so. But PI insurance is priced individually, not from a fixed rate card. Two consultants with the same job title can pay very different premiums because their risk profiles differ. Rather than quote a misleading average, this guide explains the actual drivers that move your premium and what to expect when you request a quote.

What actually moves a consultant's PI premium

Insurers assess the likelihood and potential size of a claim against you. The following factors carry the most weight:

• Fee income or turnover. This is usually the starting point. Higher income generally signals more clients and larger engagements, so more exposure. Insurers often rate premiums against your annual fees.
• The type of consulting you do. A marketing consultant, an IT consultant advising on a core system, a management consultant restructuring a business and an engineering or health-and-safety consultant carry very different risk. Advice that could cause large financial loss or physical harm attracts higher premiums.
• The cover limit you choose. A higher limit of indemnity costs more. Choosing £5m instead of £1m increases the premium, though not proportionally.
• Claims and circumstances history. Previous claims, or known circumstances that could become claims, push the price up. A clean record helps.
• Sector and client base. Working with heavily regulated clients, the public sector, or large corporates with deep pockets and demanding contracts tends to increase risk.
• Contract terms and jurisdiction. Uncapped liability, work carried out in or for the USA/Canada, or contracts that widen your duties can all affect the premium.
• Experience and qualifications. Relevant qualifications, professional body membership and years of trading can be viewed favourably.

Because these interact, a small change (for example, adding US clients or raising your limit) can shift the price noticeably. That is exactly why a fixed "consultant PI price" doesn't exist.

Choosing a cover limit: £1m, £2m or £5m

The limit of indemnity is the most that your policy will pay for a claim (or in total across a year, depending on the wording). It is one of the biggest levers on price, so it pays to choose deliberately rather than default to the lowest number.

The right limit is often decided for you: many client contracts and framework agreements specify a minimum level of PI cover you must hold. Check what your contracts require before you buy, so you are neither under-insured nor paying for cover you don't need. A broker can help you read those clauses.

Why identical consultants pay different prices

Imagine two independent management consultants, each with similar fee income and a clean record. One works mainly with small UK owner-managed businesses on strategy; the other advises large financial-services firms on regulatory change and has US-based clients. The second consultant carries a higher potential claim size and a more demanding contractual environment, so their premium is likely higher, even with the same turnover and limit.

This is the heart of the answer: PI is priced on your exposure, not on your job title. The more accurately your risk is presented to insurers, the fairer the price you tend to get.

How a broker helps you get the right price

A broker's job is to make sure insurers see your risk clearly and to find the market that rates it most competitively. Practically, that means:

• Helping you describe your activities accurately, so cover isn't too narrow or the premium inflated by vague wording.
• Advising on an appropriate limit against your contracts and exposure.
• Approaching multiple insurers who understand consultancy risk, rather than relying on a single quote.
• Checking the policy wording, retroactive date and any exclusions, not just the headline price.
• Supporting you at renewal and, crucially, if you ever need to notify a claim or circumstance.

The cheapest quote is not always the best value. What matters is that the cover responds when you need it. Start a quote with Apex and we'll build the picture with you.

One important point about PI cover

Most PI policies are written on a "claims made" basis. This means the policy that responds is the one in force when a claim is made against you, not when you did the work. Because of this, keeping cover in place continuously, and maintaining an appropriate retroactive date, matters as much as the premium itself. Let cover lapse and past work may be left unprotected.

Common questions

Is professional indemnity insurance a legal requirement for consultants?

There is no general UK law requiring all consultants to hold PI insurance. However, many client contracts, frameworks and professional bodies make it a condition of working with them, so in practice it is often effectively mandatory.

Does higher turnover always mean a higher premium?

Turnover or fee income is a major factor, so generally higher income leads to a higher premium. But it is only one input; your activities, limit, claims history and sector can influence the price just as much.

Can I reduce my premium?

Sometimes. Maintaining a clean claims record, choosing a limit that genuinely matches your contracts, describing your work accurately, and having a broker market your risk to the right insurers can all help. Reducing cover below what your contracts require is a false economy.

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.