My client has asked for PI cover before we sign — what to do

Increasingly, UK client contracts require the supplier to hold PI cover as a condition of engagement. This page is what to do when that requirement lands on your desk: what the client typically means, what limit to hold, how to evidence it, and how to get cover in place quickly if you don't already have one.

What client-required PI typically means

1. A specific cover limit — commonly £1m, £2m or £5m each and every claim.
2. A named insured — usually just your firm; occasionally the client requests to be added as additional insured.
3. An evidence document — certificate of insurance provided annually.
4. Continuous cover for the duration of the engagement plus a specified run-off period after termination.
5. Retroactive date covering pre-engagement work if the client wants continuity of protection.

Reading the client's contract clause

1. Find the insurance clause — usually near indemnity, warranties or termination.
2. Extract the specific requirements: limit, structure, retro-date, run-off, additional insured, notification obligations.
3. Flag any unusual requirements: joint policy with client, client-directed insurer selection, unlimited retro-date, longer run-off than 6 years.
4. Negotiate anything commercially unreasonable before signing.

Common cover-requirement patterns by client type

1. Corporate clients — typically £2m-£5m per claim, evidence via certificate, standard notification rights.
2. Public sector (NHS, councils, government) — often £5m-£10m, additional insured, specific claim-management protocols.
3. Financial services clients — frequently £5m+, specific requirements around FCA-regulated activity, Consumer Duty adjacent.
4. Regulated industries (energy, defence, transport) — specific insurer requirements, notification protocols, direct claims access.
5. Agencies or platforms — typically £1m-£2m, standardised evidence via certificate.

Getting cover in place quickly

1. For most professional freelancers and small firms, cover can be arranged within 1-2 weeks of engaging a broker.
2. Prepare: fee income projection, work profile, sector, any prior claims.
3. Broker or online quote engine issues quotes within days for straightforward profiles.
4. Cover-note issued to bridge to formal policy inception.
5. Certificate of insurance provided to client immediately.

Certificate of insurance — what your client sees

1. Insurer name and address.
2. Policy number and inception/renewal dates.
3. Named insured (your firm).
4. Limit of indemnity and structure (per claim / aggregate).
5. Territorial scope.
6. Broker's name and contact.
7. Any additional insureds if requested.
8. Any specific endorsements (retro-date, extensions).

Client's procurement or legal team typically reviews the certificate and asks follow-up questions. Prepare to answer.

Ongoing compliance during the engagement

1. Renew cover annually before expiry.
2. Provide fresh certificate at each renewal.
3. Notify client of any material change in cover.
4. Notify any claim that involves the client's work or the client's data.
5. Cooperate with client's reasonable audit rights.

What if you cannot meet the client's requirement

1. Negotiate the requirement — some clients will accept lower limits or alternative structures.
2. Discontinue non-required work to reduce PI cost while meeting minimum for this client.
3. Consider whether the engagement is commercially viable given the PI cost.
4. Discuss with specialist broker whether structural options (layered programme, sub-limits) can meet the requirement affordably.

Frequently asked

Related reading

• PI insurance for freelancers and contractors
• PI cover limit adequacy check
• Questions to ask a PI broker
• PI insurance for start-up firms — sector-specific