Limited companies · PI cover

PI insurance for limited companies — UK 2026

Reviewed by Apex Insurance Brokers · Published 15 July 2026

A limited company gives partial protection through corporate personality — but PI still needs to respond to professional negligence claims against the company and its directors.

How incorporation interacts with PI

The company is a separate legal entity — claims against the company are ring-fenced from directors' personal assets in most cases.

PI covers the company for professional negligence in the conduct of its business.

Directors of the company still face personal liability under Companies Act 2006 duties — D&O is a separate cover.

Employees of the company are covered by the company's PI when acting in the course of employment.

What cover a Ltd needs

PI for the company's professional activities.
D&O for directors' personal liability (Companies Act 2006 s.174 duty of skill and care).
Employment practices liability if the company has staff.
Cyber cover, separately.
Public/employers' liability where physical premises or in-person work applies.

Additional-insured extensions

Larger clients often require the client to be named as additional insured on the PI policy.

This changes the coverage dynamics — the client can trigger cover directly.

Insurers usually charge a modest additional-insured premium.

Approach with the broker — not all wordings extend to additional insureds automatically.

Cover levels for limited companies

Smaller Ltd companies (turnover under £500k): typically £1m-£2m depending on profession.

Mid-sized companies (£500k-£5m turnover): £2m-£10m depending on client base and sector.

Larger companies: bespoke placement — often with layered programmes and excess-of-loss cover.

Frequently asked

Does incorporation protect me from PI claims?

Partially. Corporate personality separates company assets from personal assets, but directors face personal Companies Act 2006 duties independent of corporate PI.

Do I need D&O if I have PI?

Yes if the company has directors. PI covers professional negligence in delivery; D&O covers directors' personal duties (fiduciary, statutory, employment claims).

What if I'm a sole director?

You still face personal Companies Act duties. D&O is worth considering for larger companies; smaller sole-director companies often self-insure this exposure.

Can employees trigger the PI policy?

Standard PI extends to employees acting in the course of their employment.

Does PI extend to subcontractors?

Usually not automatically. Named-subcontractor extensions available at cost.

What about parent/subsidiary structures?

Each legal entity needs its own PI or must be named on a group policy. Cover should reflect the actual entity structure.

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