One-person consultancies · PI

PI insurance for one-person consultancies — UK 2026

Reviewed by Apex Insurance Brokers · Published 15 July 2026

A one-person consultancy trading as a limited company faces the same claim exposure as any professional firm — but the small-business structure often means clients require documentation and cover levels that catch consultants off guard. Consultancies reviewing their current broking arrangement can read about our professional indemnity broking work for management consultants.

What makes one-person consultancies distinctive

Small business economics, professional firm claim profile.

Corporate clients often demand £1m-£5m PI as a contract condition.

IR35 status doesn't affect PI cover but may affect how contract value assumptions look.

Reputational damage from a claim can be terminal for a one-person operation — PI is business continuity as well as legal cover.

Client-contract requirements

Corporate clients (FTSE, financial services, tech): typically £1m-£5m PI required.

Public sector: often £1m minimum, sometimes £5m+.

Regulated industries (financial services, pharma, defence): higher limits standard.

Requirement to name client as additional insured is increasingly common.

Cover extensions worth considering

Cyber cover (separate policy) — data-breach risk is real.
Product liability where digital or physical outputs are delivered.
GDPR/ICO breach defence.
Legal expenses for defending against tribunal or breach investigations.
Retroactive date extending to earliest engagement.

Practical tips

Buy cover that matches your largest current contract — not the average.
Update the broker when winning a materially bigger contract.
Check client-contract PI clauses carefully — some require notification to client of any material claim.
Consider mid-term uplift where a single project's value warrants it.
Keep certificate of currency in a shareable format for client due diligence.

Frequently asked

How much PI does a one-person consultancy need?

Depends on client contracts. Typical range £1m-£5m; larger corporate clients often require £2m+.

What's the difference from sole-trader PI?

Structurally different (Ltd company vs individual), but cover principles are the same. Ltd company has corporate personality.

Does IR35 affect PI?

No — IR35 is a tax question. PI cover is unaffected.

What if I want to add a subcontractor?

Named-subcontractor extension available at cost. Approach broker before engaging the subcontractor.

Do consultancies need employers' liability?

Only if you have employees. Directors of a company usually count as employees for EL purposes — check with the broker.

Can I get cheaper cover if I'm on a small contract?

Cheaper isn't always the goal. Cover should reflect the largest engagement in the pipeline, not the current smallest.

Speak to a specialist broker

Get a considered PI quote from Apex

Get a quote Speak to a broker

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.