PI cover sizing · Start-up practice

How much PI insurance cover does a start-up practice need?

Reviewed by Matthew Bartlett, Director, Apex Insurance Brokers Limited (FCA FRN 724952) · Published 15 July 2026

Start-up practices in regulated professions need PI from day one at the sector's statutory minimum. Unregulated start-ups typically place £250k-£1m to satisfy client demands and secure contracts.

The regulatory floor: sector-specific from day one

Start-up practices in regulated professions need PI from day one at the sector's statutory minimum. Unregulated start-ups typically place £250k-£1m to satisfy client demands and secure contracts.

Regulatory floor: sector-specific minimum from day one.

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

What drives the number above the floor

Regulatory bodies require PI in place before regulated work starts.
Client contracts often demand minimum cover as a condition.
Retroactive date should extend to first regulated activity.
Start-ups often benefit from run-off protection built in from year one.

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

What's the sector-specific from day one minimum for a start-up practice?

sector-specific minimum from day one. See sector-specific from day one guidance for the exact wording.

Is the regulatory minimum enough?

For most firms, no. It's a floor — actual placements typically sit materially higher based on claim exposure.

How is my premium calculated?

Insurers price on turnover, work profile, claim history, cover level and territorial exposure. Higher limits cost more, but not proportionally.

Does aggregation matter?

Yes. If cover is on an aggregate basis, multiple claims in one year draw down the same limit.

What about run-off?

Ceased practices need run-off cover in line with the regulator's requirement — typically 6 years for most professions.

Can we change limit mid-year?

Yes, via mid-term adjustment. Broker involvement to price and place the change.

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Apex Insurance Brokers Limited is authorised and regulated by the Financial Conduct Authority. Firm reference number 724952. Registered in England and Wales, company number 07014570.

Professional indemnity

What might your PI premium look like?

A guideline range built from the premiums insurers have actually quoted on risks we handle. Pick your profession and enter a few details — it updates instantly.

Profession

Annual fee income — gross, last 12 months

Limit of indemnity

Any claims history?

Any higher-risk work? — e.g. large or overseas projects

Guideline range — this is not a quote

Choose your profession and enter your fee income to see a guideline range.

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How these figures are produced

This guide is built from Apex's own market data: the premiums insurers have actually quoted and charged on professional indemnity risks we have handled. Each night that data is aggregated into anonymised rate bands by profession, fee income and limit of indemnity. No client information is published — a band only appears where it contains at least five separate records, and unusually high premiums are excluded so a single atypical risk cannot distort the guide.

The range shown spans the typical spread of recent market outcomes for similar risks. Individual quotes can fall outside it in either direction. Figures exclude insurance premium tax at 12%.

This calculator is not a quote and is not an offer of insurance or advice. Your actual premium depends on full underwriting of your business, including your activities, claims record and insurer appetite at the time.