Client explanation · PI
How to explain PI cover to your clients
Reviewed by Matthew Bartlett, Director, Apex Insurance Brokers Limited (FCA FRN 724952) · Published 15 July 2026
Clients increasingly want to understand your PI cover. Explaining it well builds trust; explaining it badly damages relationships.
What clients want to know
- Cover limit — is it enough for the work?
- Insurer — who's actually behind the cover?
- Retroactive date — is historic work covered?
- Additional-insured — can we be named on your policy?
- Certificate of currency — can we see evidence?
- Claim history — anything material to disclose?
- Renewal date — when does cover reset?
What to disclose
- Aggregate limit and structure (aggregate vs each-and-every).
- Insurer identity (name and financial-strength rating).
- Basic cover scope (what's covered, what's excluded broadly).
- Retroactive date position.
- Certificate of currency (annual document).
- Basic run-off arrangements where applicable.
- Consumer Duty documentation (regulated FS firms).
What NOT to disclose
- Specific wording (too detailed for most clients — may cause misunderstanding).
- Commission arrangements (unless specifically asked and legally required).
- Notified circumstances (usually protected information).
- Insurer's specific concerns or restrictions.
- Personal information about advisers or partners.
Additional-insured requests
- Standard practice for larger corporate clients.
- Consider before agreeing — changes cover dynamics.
- Broker involvement to arrange the extension.
- Modest cost typically.
- Document the additional-insured arrangement.
- Confirm in writing what triggers cover for the client.
When clients ask for cover level uplift
- Contract-required limits are commonly £1m-£5m for commercial clients.
- Public sector often demands £1m minimum.
- Financial services vendors face higher requirements.
- Cost of uplift is usually modest but should be reflected in fees.
- Broker involvement to arrange mid-term if needed.
Frequently asked
Do I have to explain PI cover to my clients?
Only if they ask, or if contractually required. Best practice: proactive disclosure builds trust.
What if a client asks about my commission?
For commercial customers, you can disclose. For consumers, ICOBS 4.4 applies. Broker involvement helps.
Can I refuse an additional-insured request?
Yes, but it may cost you the engagement. Consider whether the client is worth the extension.
What about our claim history?
Only disclose what's material — not the full file. Broker guidance on this matters.
Do we need to give clients a certificate of currency?
For most commercial engagements, yes — standard practice.
What if the client asks about our insurer's strength?
Provide the insurer name and financial-strength rating. Standard disclosure.
Related
- Additional-insured and client naming in PI UK
- Client-required PI cover professional advisers UK
- Consumer Duty for professional firms
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.
Offices: QCS, 53 Queen Charlotte Street, Bristol BS1 4HQ · Unit 24, Basepoint Centre, Jubilee Close, Weymouth DT4 7BS