How much is professional indemnity insurance for project managers?
Reviewed by Matthew Bartlett, Director, Apex Insurance Brokers Limited · Last reviewed 2026-08-05
If you manage projects for clients, professional indemnity (PI) insurance protects you when a client alleges your advice, planning or oversight caused them a financial loss. The natural next question is what it costs, and the honest answer is that it depends on your specific profile. Below we explain the real drivers that move a project manager's PI premium, so you can see why quotes vary and what to expect when you approach the market.
Why there is no fixed price
PI is priced individually. An insurer looks at your business, estimates how likely a claim is and how large it could be, then sets a premium to match that exposure. Two project management consultancies with identical turnover can pay meaningfully different amounts because one works on straightforward internal change projects and the other oversees safety-critical infrastructure. Rather than chase an "average" that would not apply to you, it is far more useful to understand the levers.
The main cost drivers
These are the factors insurers weigh most heavily when rating a project manager's PI:
| Driver | Why it moves your premium |
|---|---|
| Turnover / fee income | The primary sizing measure. Higher fee income signals more projects and more potential exposure, so it typically lifts the premium. |
| Type of projects | IT rollouts, office moves, construction, engineering and infrastructure carry very different risk. Higher-value or safety-critical work costs more to insure. |
| Cover limit chosen | A £5m limit costs more than £1m. The right limit is driven by contract requirements and the size of loss a project could realistically cause. |
| Claims history | A clean record helps. Past claims or known circumstances suggest higher future risk and push the premium up. |
| Sector & contract value | Managing large budgets, regulated sectors or projects where delays cause big knock-on losses raises the exposure and the price. |
| Excess & retroactive date | A higher voluntary excess can reduce the premium; how far back cover reaches for past work also affects the rating. |
Beyond these, insurers also consider your qualifications and experience, whether you use written contracts and clear scopes of work, how you document decisions, and whether you subcontract. Good risk management makes you more attractive to insurers and can be reflected in your terms.
Want a figure that reflects your projects, not a generic average? Tell us about your work and we will approach the market for you.
Get a PI quote →Choosing your cover limit
The limit of indemnity is the maximum the policy will pay for a covered claim, and it is one of the biggest single influences on price. Project managers most often consider these generic options:
- £1m – often a starting point for smaller consultants working on lower-value projects where clients or contracts do not demand more.
- £2m – a common middle ground, frequently requested in client contracts and framework agreements.
- £5m – typical where you manage large budgets, work with public bodies or major contractors, or handle projects where a single failure could cause a substantial loss.
Two points matter here. First, your contracts may dictate the minimum limit you must carry, so check what clients require before you buy. Second, a higher limit does not increase the premium in a simple straight line, and matching the limit to your real exposure is a conversation worth having with a broker rather than guessing.
What you can do to keep the premium fair
You cannot change your turnover to save money, but you can present your business well. Insurers reward clarity and control. The following genuinely help:
- Use written contracts with defined scopes, deliverables and limits of liability.
- Keep clear records of decisions, instructions and client sign-offs.
- Disclose your activities accurately and completely on the proposal form.
- Report circumstances early – hiding a potential issue can jeopardise cover.
- Choose an excess you can comfortably afford at claim time.
Accurate disclosure is not just good practice; under the Insurance Act 2015 you have a duty to make a fair presentation of the risk, and getting this right protects your claims position later.
How a broker helps with price
PI for project managers is not a commodity you buy off a shelf. A broker's job is to present your business to insurers in the best, most accurate light, translate your activities into terms underwriters understand, and compare terms across the market rather than relying on a single quote. Where an insurer has queries about a particular project type or a past claim, we handle those conversations for you and negotiate the wording, limit and excess so the cover actually fits how you work. You can start a quote online and we will do the market legwork.
Because we place the risk across multiple insurers, we can often find a more competitive premium than approaching one insurer directly, and we make sure the cheapest number is not hiding gaps that would leave you exposed on your next project.
Common questions
Is PI insurance a legal requirement for project managers?
There is no general law forcing every project manager to hold PI, but many clients, contracts and public-sector frameworks require it as a condition of appointment, so in practice you often cannot win work without it.
Does a bigger cover limit always cost a lot more?
Not proportionally. Moving from £1m to £2m or £5m increases the premium, but usually not by the same multiple as the limit itself. The right level is best matched to your contract requirements and realistic exposure.
Why is my quote different from another project manager's?
Because PI is priced on your individual profile – your fee income, the projects you run, your claims record, sector risk and the limit you choose. Two similar-sounding businesses can genuinely pay different amounts.
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.