How much PI insurance cover does a it consultant need?

IT consulting has no statutory PI minimum. BCS (British Computer Society) recommends 'appropriate' cover. Standard placements start at £250k for freelancers and scale to £5m+ for consultancies handling regulated data or critical infrastructure.

The regulatory floor: BCS / voluntary

IT consulting has no statutory PI minimum. BCS (British Computer Society) recommends 'appropriate' cover. Standard placements start at £250k for freelancers and scale to £5m+ for consultancies handling regulated data or critical infrastructure.

Regulatory floor: not fixed — contract-value based.

But the regulatory floor is a floor, not a target. Actual placements are usually materially higher.

What drives the number above the floor

• Software project failure risks are the primary claim driver.
• GDPR/ICO exposure often needs £1m+ separately or as an extension.
• IR35 status doesn't affect PI cover but may affect contract-value assumptions.
• Cyber cover is separate from PI — both are usually required.

Typical placement bands

Small practice: floor to 2× floor.

Medium practice: 2-5× floor.

Larger practice: 5×+ floor, guided by claim exposure and turnover.

Bespoke risks (larger transactions, complex work): bespoke sizing with the broker.

The Apex approach

We size PI limits by looking at three factors: regulatory floor, worst-case single claim exposure, and aggregation risk across the book of work.

For most firms, that produces a limit materially above the regulatory floor.

The right limit balances cost against catastrophe protection — we work through this with you at placement.

Frequently asked

Related

• IT consultant PI insurance UK guide 2026
• Sizing your PI limit — decision framework
• Aggregate limit vs each-and-every claim