Professional Indemnity Insurance Glossary

UK Professional Indemnity Insurance has a vocabulary of its own, drawn from insurance market practice, English contract and tort law, FCA regulation, and the rulebooks of the major UK professional bodies. The same word — "claim", "limit", "excess" — often means something slightly different in PI than it does in everyday usage, and an unfamiliar phrase in a policy schedule can change the cover materially.

This glossary collects the terms that recur in UK PI policies, regulatory documents, and broker conversations. Each entry runs to 60-100 words, with links into our longer guides where the term deserves a fuller treatment. Use it as a reference at renewal, when reading a wording, or when reviewing a claims correspondence file.

For the foundational picture see our introductory guide to Professional Indemnity Insurance. For the structural choices around limits see aggregate vs each-and-every claim limit explained. For the renewal discipline see PI insurance renewal — what to check before you sign.

Terms below are listed alphabetically with anchor IDs for direct linking.

Aggregate limit: The total the insurer will pay across all claims notified during the policy year. An aggregate limit of £1m means £1m is the most the insurer will pay in the year regardless of how many claims there are. Contrast with an each-and-every-claim limit, where the figure applies separately to each claim with no annual ceiling. Many policies are hybrid — for example £1m each-and-every claim with a £2m aggregate. ICAEW's regulations for accountants explicitly require aggregate cover; the SRA Minimum Terms for solicitors and ARB criteria for architects do not. See our [aggregate vs each-and-every claim limit explained](/aggregate-vs-each-and-every-claim-limit-explained/) article.
Any one claim ("AOC"): The phrase identifying a per-claim limit. A policy with a limit "£1m any one claim" pays up to £1m on each notified claim. Importantly, "any one claim" describes the per-claim figure only; whether there is also an aggregate cap on the annual total depends on additional language. A policy can be "£1m any one claim and in the aggregate" (an aggregate policy), "£1m any one claim with a £2m aggregate", or "£1m any one claim with no aggregate" (the broadest). Read the schedule's full wording.
ARB minimum criteria: The Architects Registration Board's published Professional Indemnity Insurance criteria, applicable to architects on the ARB register. ARB requires cover on a civil liability, each-and-every-claim basis with no aggregate cap on the main limit. Minimum limits scale by fee income: £250,000 for practices below £100,000 of annual fee income, £500,000 for £100,000 to £200,000, and £1m for above £200,000. ARB recommends six years of run-off cover on cessation, with longer for projects executed as deeds. See our [ARB minimum terms PI explained](/arb-minimum-terms-pi-explained/) cluster article.
Assigned Risks Pool (ARP): A historical mechanism within the SRA-regulated solicitors' market, providing PI cover to firms unable to secure cover from the open market. The ARP was closed to new entrants in 2013 but the concept persists in regulatory discussions. Comparable concepts have existed in other regulated sectors — RICS operated an ARP-like arrangement for surveyors who could not obtain cover. Where the term appears in modern documents it is usually historical context rather than a live mechanism; firms unable to obtain cover today usually need specialist broker support or, in extremis, controlled wind-down.
BIPAR / BIBA / FCA distinction: BIPAR is the European federation of insurance intermediaries; BIBA (the British Insurance Brokers' Association) is its UK affiliate and the principal UK broker membership body. The FCA (Financial Conduct Authority) is the UK statutory regulator of insurance distribution. A UK PI broker is regulated by the FCA, may be a member of BIBA as a matter of trade association, and historically referenced BIPAR codes. BIBA membership signals adherence to an industry standard supplementing FCA rules; FCA authorisation is the regulatory baseline required to operate.
Broker fee: A fee charged by the broker to the client, in addition to (or in some cases in place of) the commission paid by the insurer. Broker fees must be disclosed in advance under FCA rules and are typically explained on the broker's terms of business. Most UK PI placements are commission-funded, with broker fees applied transparently for additional services or for accounts where commission alone does not cover the work. A renewal pack should make the total cost — premium plus IPT plus any broker fee — explicit.
Claims and circumstances information ("CCI"): The five-year claims and notified-circumstances history a firm provides to underwriters at renewal. Standard practice is to disclose all claims, all notified circumstances (even those that have closed without becoming claims), and any complaints or near-miss matters that touched on professional services. Underwriters use CCI to price renewal and to identify trends in the firm's risk profile. Concealing or under-disclosing CCI risks breaching the duty of fair presentation under the Insurance Act 2015, with remedies that may include policy avoidance.
Claims-made basis: The basis on which almost all UK Professional Indemnity policies are written. A claims-made policy responds to claims first made against the insured, and notified to the insurer, during the policy period — regardless of when the alleged work was done. The current policy is what responds to a claim about historic work, provided the retroactive date covers the older period. The alternative — "occurrence" cover — applies to general liability lines but not normally to PI. The implications include the need for continuous cover, prompt notification, and run-off on cessation.
Claims notification clause: The provision in the policy wording that sets out when and how the insured must notify the insurer of a claim or circumstance. Standard language requires notification "as soon as practicable" after the insured becomes aware. Some wordings impose specific timeframes (within 30 days, within 60 days) or require notification in writing in a defined form. Late or non-notification is the most common reason a PI claim fails to be covered. The clause should be read at every renewal to identify any tightening.
Civil liability cover: The broadest form of PI cover, responding to any civil claim against the insured arising from the insured's professional activities — including but not limited to claims for negligence, breach of contract, breach of statutory duty, defamation, and infringement of intellectual property rights. Contrast with the narrower "negligence, error or omission" form, which responds only to claims framed as negligence and may exclude breach of contract or statutory claims. ARB requires architects to hold civil liability cover; RICS, SRA and ICAEW similarly expect the broader form.
Collateral warranty: A direct contractual undertaking by a professional (often architect, engineer or surveyor) to a third party (often a funder, purchaser, or tenant) who is not a party to the underlying appointment contract. Collateral warranties extend the professional's contractual liability to a wider group of beneficiaries. PI policies typically respond to claims under collateral warranties provided the warranty is on reasonable terms and within the policy's scope. A collateral warranty containing onerous indemnities or extended liability periods may need to be specifically endorsed on the policy.
Commission: The remuneration paid by the insurer to the broker on placement of a policy, typically expressed as a percentage of the premium. UK PI commission rates vary from around 7.5% to 25% depending on the insurer's panel arrangements and the breadth of broker services. FCA rules require commission disclosure to commercial clients on request, and on a default basis in some categories. Brokers must disclose the basis of remuneration in their terms of business. Commission paid by the insurer does not mean the broker acts for the insurer — the broker continues to act for the client.
Contract works extension: A specific extension found on some PI policies, covering the cost of remedial works to the insured's own design or specification where the works are needed to remedy a defect arising from the insured's professional services. The extension bridges the gap between traditional PI cover (which responds to claims for financial loss) and the physical remediation of a defective design. Common on architects' and engineers' policies. Usually sub-limited (often £100,000 to £500,000) and aggregated. Useful where the financial loss claimed by the client is the cost of remedial works rather than abstract damage.
Costs in addition (defence costs in addition to the limit): A policy structure where defence costs (legal fees, expert witness fees, court fees) are paid by the insurer in addition to the limit of indemnity. A £1m limit with costs in addition could see the insurer pay £1m to the claimant plus separately fund six-figure defence costs. The SRA Minimum Terms require costs in addition for the mandatory tier; ICAEW's regulations require 100% indemnity cover (effectively the same). Contrast with "costs inside the limit", where defence costs reduce what is available for settlement.
Costs inside the limit (costs eroding): The alternative to costs-in-addition: defence costs are paid from within the limit of indemnity, eroding what is available to settle the claim. A £1m limit with costs inside that incurs £200,000 of defence costs leaves £800,000 for settlement. This structure is more common on excess layer cover and on certain unregulated PI products. For regulated activities the regulator typically requires costs in addition. Costs inside the limit is materially narrower cover and warrants attention when comparing quotes.
Cyber extension / cyber liability interface: Many modern PI wordings include some cyber-related cover — first-party data breach response, third-party privacy claims, network security liability — within the PI policy or by endorsement. The interface between PI and stand-alone Cyber Liability policies is one of the more complex coverage questions in 2026. Stand-alone Cyber tends to provide broader first-party cover (breach response costs, ransom, business interruption) while PI covers professional-services-related cyber claims more deeply. For IT consultancies in particular the wordings should be structured to dovetail rather than overlap. See our [aggregate vs each-and-every claim limit explained](/aggregate-vs-each-and-every-claim-limit-explained/) on sub-limit interactions.
Deductible: Used interchangeably with "excess" in most UK PI contexts. The amount the insured pays out of pocket on each claim before the insurer's cover responds. UK insurance market practice tends toward "excess"; some US-influenced wordings use "deductible". The number may be different per claim ("each and every claim") or in the aggregate. For regulated activities, the deductible/excess may be capped by the professional body — ICAEW caps the maximum aggregate excess at the higher of £3,000 or 3% of gross fee income.
Deeming clause: Provision in the policy wording deeming a circumstance notified during the policy year to be a claim made under that policy. A claim crystallising later — even after the insured has moved insurer — is dealt with by the policy that received the notification, at that policy's terms and limits. The deeming clause is what makes the notification-of-circumstances mechanism work in claims-made cover. A policy without an effective deeming clause leaves a notified-but-unresolved circumstance in awkward limbo on renewal. Confirm at every renewal.
Defamation cover: Many PI policies extend to claims for defamation (libel or slander) arising from the insured's professional services. The cover is particularly relevant for journalists, PR consultants, marketing agencies, certain consultancy work, and any professional whose advice or output is published. Defamation cover is usually sub-limited (commonly £100,000 to £500,000) and may be aggregated separately from the main limit. The Defamation Act 2013 reshaped the threshold for actionable claims; PI underwriters take a close interest in the underlying publication and editorial practices of insureds.
Defence costs: The legal and ancillary costs of defending a PI claim — solicitors' fees, counsel's fees, expert witness fees, court fees, mediation fees. Defence costs in a contested PI claim regularly run to six figures, and on complex multi-party disputes can exceed the underlying damages claimed. The treatment of defence costs against the limit (in addition, or within the limit) is one of the most important structural features of the policy. See [costs in addition](#costs-in-addition) and [costs inside the limit](#costs-inside-the-limit).
Dishonesty cover (fidelity / employee dishonesty): Cover for claims arising from the dishonest, fraudulent or criminal conduct of an employee of the insured. Dishonesty by partners or directors is typically excluded from the main PI cover (because allowing it would be against insurance principles), but employee dishonesty is often covered, sometimes via a specific extension and often sub-limited (commonly £100,000 to £500,000). ACCA requires fidelity guarantee insurance for accountancy firms with principals or staff; other regulators may also expect it. Particularly relevant for firms handling client money.
Each-and-every claim (E&E): The broader of the two limit structures. An "each-and-every claim" limit applies separately to every notified claim with no annual ceiling — every claim is met against a fresh limit. ARB, SRA and RICS require each-and-every cover for their respective regulated firms. ICAEW and ACCA allow aggregate cover. The premium uplift for each-and-every over an equivalent aggregate policy at the same headline limit is typically 15% to 35%. See our [aggregate vs each-and-every claim limit explained](/aggregate-vs-each-and-every-claim-limit-explained/) article.
Employers' Liability interface: The boundary between Professional Indemnity and Employers' Liability (EL) cover. EL is compulsory under the Employers' Liability (Compulsory Insurance) Act 1969 and responds to claims by employees against the employer for work-related injury or illness. PI does not respond to employee injury claims, even where the underlying issue involves the employer's professional decisions. The wordings do not overlap and one does not substitute for the other. The same incident can sometimes implicate both — for example, a stress claim by an employee against an employer accused of negligence — but the claims go to different policies.
Endorsement: A change to a policy made mid-term by agreement between the insurer and the insured, documented in writing. Endorsements may add or remove cover, change limits, add or remove insureds, or vary the wording. Common reasons include taking on a new partner, opening a new office, taking on a new service line, or correcting an error in the original schedule. Endorsements should be requested through the broker, agreed in writing by the insurer, and filed with the policy documents. They are part of the policy from the effective date of the endorsement.
Excess: The amount the insured pays out of pocket on each claim before the insurer's cover responds. Excess decisions are usually a trade-off between premium reduction (higher excess = lower premium) and out-of-pocket exposure (higher excess = bigger hit per claim). The excess may apply to defence costs as well as settlements. For regulated activities the excess may be capped by the professional body. See our [PI insurance renewal — what to check before you sign](/pi-insurance-renewal-what-to-check-before-you-sign/) on excess decisions at renewal. Used interchangeably with "deductible".
Exclusions: Specific scenarios that the policy explicitly does not cover. Standard PI exclusions across most wordings include regulatory fines and penalties, criminal conduct, fraud or dishonesty by the principals, fee disputes, bodily injury and property damage (which fall to Public Liability), employee injury (which falls to Employers' Liability), war and nuclear risks, and liabilities assumed under contract that exceed those at common law. Sector-specific exclusions may apply — for example, fitness-for-purpose obligations for architects, certain trustee activities for solicitors, or specific high-risk products for IFAs. Read the exclusions list at every renewal.
Fair presentation of the risk: The duty imposed on the insured by the Insurance Act 2015 to make a fair presentation of the risk at inception and at renewal. Material circumstances either known or that ought reasonably to be known must be disclosed. The Act replaced the old common-law duty of utmost good faith and introduced a proportionate-remedies framework. Failure to make a fair presentation gives the insurer remedies ranging from price adjustments (for negligent failures) to outright avoidance of the policy (for deliberate or reckless failures). Disclose materially and transparently at every renewal.
Fee income basis: The use of the insured's fee income (or "gross professional fee income") as the rating basis for premium and as the reference for regulator-mandated minimum cover. Most UK PI markets price using fee income as a headline metric, with adjustments for activity mix, sector exposure, claims history and other factors. Regulator minima are often expressed as a multiple of fee income — for example, ICAEW's £2m minimum with a 2.5x gross fee income floor; ACCA's 2.5x scaling below £600,000; ARB's fee-banded approach. Accurate fee income reporting at renewal matters.
FCA Conduct of Business (ICOBS): The Insurance: Conduct of Business Sourcebook within the FCA Handbook, setting out the rules governing insurance distribution in the UK. Key provisions include: brokers must act for the client unless explicitly disclosed otherwise; communications must be fair, clear and not misleading; brokers must identify the client's demands and needs and recommend suitable cover; remuneration must be disclosed appropriately. ICOBS applies to all FCA-authorised UK insurance brokers including those placing PI cover. Compliance is monitored by the FCA and breaches can result in enforcement action.
Fidelity cover: See [Dishonesty cover](#dishonesty-cover). Fidelity guarantee insurance is the older term for the cover that responds to losses caused by dishonest acts of employees of the insured. ACCA mandates fidelity cover for accountancy firms with principals or staff; other regulators have varying positions. Often combined with PI cover via a single extension; sometimes purchased as a stand-alone policy. Particularly important for firms handling client money (solicitors with client account, IFAs handling investments, escrow agents) where the exposure to employee fraud is significant.
Financial Ombudsman Service (FOS): The statutory ombudsman for financial services complaints in the UK. Eligible complainants — broadly, consumers and certain small businesses — who are not satisfied with an FCA-authorised firm's response to a complaint can escalate to the FOS at no cost. The FOS can make awards binding on the firm. For PI broker disputes, eligible complainants can use the FOS process. The FOS limit on individual awards is currently £430,000 (subject to periodic review). The FCA-authorised firm must explain FOS access in its complaints procedure.
Hammer clause (consent to settle): A provision allowing the insured to insist on contesting a claim that the insurer wishes to settle. If the insurer offers settlement and the insured refuses, some wordings cap the insurer's exposure at the settlement amount plus pre-refusal defence costs — leaving the insured to fund the additional defence and any larger settlement. Hammer clauses arise where reputational considerations (an insured who fears admission of liability would harm their professional standing) conflict with the insurer's commercial settlement decision. Wording varies; read the consent-to-settle provision in the policy.
Hard market: A period of market conditions characterised by rising premiums, tighter cover, more selective underwriting, and reduced capacity. UK PI markets experienced hard conditions through the early 2020s for architects (driven by cladding and fire safety), for audit firms (driven by high-profile audit failures), and for solicitors (driven by SRA-mandated cover scale). Markets have softened since 2024-25 for most sectors though some specialist areas remain disciplined. The opposite is a soft market — falling premiums, broader cover, more competition. Where your renewal falls in the cycle materially affects pricing.
Hold harmless / indemnity clauses: Contractual provisions under which the insured agrees to indemnify a counterparty against losses arising from the insured's activities — often broader than the duty the insured would otherwise owe at common law. Standard PI cover responds to liabilities the insured has at common law or under statute; indemnities assumed under contract that go materially beyond this can sit outside cover. The exclusion of "liabilities assumed under contract" is found in most wordings. Where broad hold-harmless clauses are unavoidable (some client contracts demand them), they may need to be specifically endorsed.
Insurance Act 2015: The principal modern statute governing UK insurance contract law. Effective 12 August 2016, the Act introduced the [fair presentation of risk](#fair-presentation) duty in place of the old utmost good faith doctrine, a proportionate-remedies framework for breach, and provisions on warranties and basis-of-contract clauses. The Act is the framework within which UK PI policies operate and against which their wordings are interpreted. The Enterprise Act 2016 added provisions on damages for late payment of claims, also relevant to PI.
Insured (definition of): The party or parties covered by the policy. The definition matters more than it first appears. Most UK PI wordings extend "insured" to include the firm itself, its current partners or directors, its current employees, and — importantly — former partners and former employees in respect of work done while at the firm. The breadth of the definition affects who is protected when a claim arrives against a named individual. Confirm at renewal that the definition extends to former partners, particularly relevant for firms with a history of personnel changes.
Insurance Premium Tax (IPT): The tax payable on insurance premiums in the UK. Standard rate is 12%, applied to PI premiums (and most general insurance lines) at policy inception and renewal. IPT is collected by the insurer and remitted to HMRC. It is not a broker fee or commission — it is a statutory tax. The renewal pack should set out the premium and the IPT separately; the total cost to the client is premium plus IPT plus any broker fee. IPT rates can change with Budget announcements; the rate at policy inception applies for the policy year.
Layered cover: A placement structure in which the insured buys cover in successive layers from different insurers. A typical structure for a mid-sized firm: primary insurer covers the first £2m; first excess insurer covers the next £3m above; second excess insurer covers a further £5m above. Each layer is priced separately, with the deeper layers cheaper per pound of cover because they only respond if the underlying layers are exhausted. Layered structures are cost-effective at higher total limits and are standard for larger firms. The primary insurer typically leads claims handling.
Limit of indemnity: The headline maximum the insurer will pay under the policy, before consideration of structure (aggregate or each-and-every), defence costs (in addition or inside), excess, or sub-limits. The headline figure is the starting point; the structure determines what it actually means. A £1m each-and-every claim policy with costs in addition is a substantially different product from a £1m aggregate policy with costs inside. See our [aggregate vs each-and-every claim limit explained](/aggregate-vs-each-and-every-claim-limit-explained/) for the detail.
Loss of documents extension: A specific extension covering the cost of recreating client records that have been lost, damaged or destroyed (whether physical files or electronic records). Sub-limited (commonly £100,000 to £500,000) and useful where the loss of records itself produces a financial loss for the client or for the firm. Modern wordings increasingly fold this into broader cyber-related extensions where the loss is from a cyber incident. For firms holding extensive historic client records (solicitors, architects with project archives, surveyors with valuation libraries) the loss-of-documents cover is relevant.
Material change disclosure: The obligation under the [fair presentation of risk](#fair-presentation) duty to disclose material changes to the firm's risk profile at renewal. Material changes include mergers, acquisitions, restructurings, departures of senior partners, significant changes in client or sector mix, significant changes in engagement value, and material changes to internal risk management. Failure to disclose material changes can give the insurer remedies under the Insurance Act 2015. The renewal proposal form is the structured opportunity to disclose; principals should be involved in completing it.
Minimum Terms and Conditions (MTC): The mandatory minimum policy wording for SRA-regulated solicitors, prescribed by the SRA Indemnity Insurance Rules. The MTC sets out the cover that all participating insurers must offer at minimum to solicitor firms, including £2m or £3m of cover (depending on entity structure), costs in addition, mandatory defence-costs clauses, six years' run-off on cessation, and specific provisions on insolvency of the insured. Insurers offering MTC cover must be on the SRA's list of "qualifying insurers". The MTC is the most prescriptive of the UK PI regulatory frameworks.
Notification of circumstances: The provision in the policy wording requiring the insured to notify the insurer of any circumstance that may give rise to a claim, in addition to actual claims. The standard threshold is low — a complaint, an internal recognition that work has gone wrong, an industry issue affecting historic work. The wording typically requires notification "as soon as practicable" after the insured becomes aware. Late or non-notification is the most common reason a PI claim fails to be covered. Notification preserves cover through the [deeming clause](#deeming-clause).
Occurrence basis: The alternative to [claims-made basis](#claims-made). An occurrence policy responds to events that occurred during the policy period, regardless of when the claim is later made. PI is almost never written on an occurrence basis in the UK; most general liability lines (Public Liability, Employers' Liability) are occurrence-based. The implications differ: occurrence cover does not need continuous renewal to remain protected against historic events, while claims-made cover does. Understanding which basis applies to which policy is essential when assessing protection.
Ombudsman: See [Financial Ombudsman Service](#financial-ombudsman-service). Eligible complainants who are not satisfied with an FCA-authorised firm's complaint handling can escalate to the Financial Ombudsman Service. For complaints about the underlying professional service (e.g., legal services) different ombudsmen apply — the Legal Ombudsman for solicitors and other legal services providers, the Architects Registration Board complaints process for architects.
Participating insurer / qualifying insurer: Insurers that have contracted with a regulator to provide qualifying cover on a mandatory minimum wording. The SRA maintains a list of "qualifying insurers" for solicitors' MTC cover; ICAEW publishes a list of "participating insurers" for accountants' qualifying cover under its Professional Indemnity Insurance Regulations. The lists change as insurers enter or leave the market and should be checked at each renewal. Cover placed with a non-qualifying insurer does not meet the regulator's minimum requirements even if the policy is otherwise fit for purpose.
Policy period: The duration of the policy, typically twelve months from the inception date to the expiry date. The policy period defines the window during which claims and circumstances must be notified to be covered under that policy. Renewal is the process of agreeing terms for the successor policy period. Continuity from one policy period to the next is essential for claims-made cover; a gap, even of a single day, leaves any claim notified during the gap uninsured.
Premium: The amount paid to the insurer for the cover provided under the policy. PI premiums are calculated by reference to fee income, activity mix, claims history, sector exposure, limit, excess, and breadth of cover. The premium is normally paid annually at inception, sometimes with monthly instalments via a finance arrangement. IPT and any broker fee are paid in addition. Premium movement at renewal should be explained by the broker against the market context — a hardening or softening market, changes in the firm's profile, changes in the cover.
Proposal form: The structured questionnaire completed by the insured at inception and at each renewal. The proposal form is the formal vehicle for the firm's disclosure of material circumstances under the [fair presentation of risk](#fair-presentation) duty. Standard sections cover fee income, activity split, sector and client mix, claims and notifications history, internal risk management, and any material changes from the prior year. The completed form is part of the contract and answers must be accurate. The principal of the firm signs the form.
Reinstatement: A provision allowing the limit of indemnity to be restored ("reinstated") after a claim has eroded it. In an aggregate policy, a claim that uses part of the limit reduces what is available for subsequent claims; some wordings provide an automatic reinstatement of the limit (free or for an additional premium) for one or more reinstatements per policy year. Reinstatement provisions are common in larger placements and on excess layers. The presence and terms of any reinstatement should be confirmed on the schedule.
Retroactive date: The earliest date back to which the policy will respond. A retroactive date of 1 January 2015 means the policy will respond to claims about work done from that date forward; it will not respond to work done before. For continuously-insured firms the retroactive date is usually "unlimited" or "full retro". When switching insurer it is essential to confirm the new policy carries a retroactive date at least equal to the previous policy's. See our [PI insurance renewal — what to check before you sign](/pi-insurance-renewal-what-to-check-before-you-sign/) on retroactive cover.
RICS Minimum Approved Policy Wording (MAPW): The mandatory minimum policy wording for RICS-regulated surveying firms, prescribed by the RICS. The MAPW sets out cover required for RICS firms including civil liability cover, each-and-every claim basis on the main limit, turnover-banded minimum limits (up to £1m), six years' run-off on cessation, and specific provisions on insolvency. RICS firms must hold cover meeting MAPW from a list of approved providers. The framework parallels (but is distinct from) the SRA's MTC for solicitors and ICAEW's Regulations for accountants.
Run-off cover: PI cover bought after the insured ceases to practice, designed to respond to claims about work done during the practice years. Because PI is [claims-made](#claims-made), the last live policy is the last policy that will respond once premiums stop — unless run-off is bought. Most professional bodies mandate run-off: six years for SRA solicitors, six years for ACCA, two-to-six years for ICAEW, six years for RICS, recommended six years for ARB (longer for deeds). Typically priced as a single up-front premium as a multiple of last working premium.
Schedule: The summary document setting out the specific terms of the policy — the named insured, the policy period, the limit of indemnity (including structure), the excess, the retroactive date, the sub-limits and extensions, the premium, the IPT and any broker fee. The schedule sits alongside the policy wording; the schedule is policy-specific while the wording is the standard form. In any dispute about cover the schedule and wording together control. The schedule is the document quoted in claim correspondence and should be kept readily accessible.
Single-claim aggregation / one-occurrence wording: Wording that deems multiple claims arising from a common cause to be a single claim for limit purposes. If two separate clients sue an architect over the same defective design template, the wording may aggregate those into a single claim — relevant for the per-claim limit. Single-claim aggregation is generally protective of the insurer rather than the policyholder. Aggregation language varies materially between wordings; where multiple-related-claims is a foreseeable risk (template-based services, repeated-engagement work for the same client group), the aggregation language warrants careful reading.
SRA Indemnity Insurance Rules: The Solicitors Regulation Authority's mandatory PII framework for SRA-regulated firms. The rules require firms to hold cover meeting the [Minimum Terms and Conditions](#mtc) from a [qualifying insurer](#participating-insurer), with limits of £2m for partnerships and unincorporated practices and £3m for incorporated practices (LLPs and limited companies). Renewal is annually on 1 October. The rules also provide for the post-six-year tail mechanism, historic Assigned Risks Pool arrangements, and the Solicitors Indemnity Fund's residual role. The most prescriptive of the UK PI regulatory frameworks.
Sub-limit: A smaller cap inside the main limit of indemnity, applying to a specific extension or risk type. Common sub-limits include fire safety and cladding cover, employee dishonesty, defamation, loss of documents, contract works, and certain cyber-related elements. A £2m main limit with a £250,000 sub-limit on fire safety means fire safety claims are capped at £250,000 even though the main limit is £2m. Sub-limits are commonly aggregated even when the main limit is each-and-every. The aggregate effect of multiple sub-limits is to narrow cover progressively. Identify all sub-limits at renewal.
Terms of Business Agreement (TOBA): The contractual document setting out the basis on which the broker acts for the client. UK FCA-authorised brokers must provide a TOBA at the start of the relationship and refer to it in subsequent engagement. Standard contents include the broker's regulatory status, the basis of remuneration (commission and/or fees), the scope of services, the handling of client money where applicable, complaints handling and FOS access, data protection arrangements, and the basis on which the relationship can be terminated. The TOBA is the client's primary document of reference on what the broker does and how it is paid.
Third-party liability: The category of liability covered by PI — civil claims from third parties (clients, end-users, downstream parties) for financial loss arising from the insured's professional services. Distinguishable from first-party cover (which covers the insured's own losses) and from regulatory cover (which would address fines and penalties, normally excluded). The third-party requirement means PI does not respond to the insured's own internal losses, recall costs (typically), or own-account remediation outside the contract works extension where one is in place.
Warranty: In insurance law, a fundamental term of the contract, breach of which historically discharged the insurer from liability. The Insurance Act 2015 reformed the law of warranties — breach now suspends rather than discharges cover, and cover resumes when the breach is remedied. Modern PI wordings tend to avoid "warranty" language but where it appears the meaning may be specific. In commercial usage, "warranty" can also refer to product warranties or collateral warranties — see [collateral warranty](#collateral-warranty).
Without prejudice (in claims correspondence): A legal label applied to communications during a dispute, indicating that the communications are made on the basis of settlement negotiation and cannot be put before a court if the matter proceeds to trial. Correspondence during the defence of a PI claim is often headed "without prejudice" or "without prejudice save as to costs". The label is not a magic incantation — the protection depends on the substance of the communication and the context. Insureds should not assume that all correspondence in a claims context is without prejudice; the policy file should be managed accordingly.
Wording (policy wording): The standard contractual document setting out the cover provided by the policy. The wording sits behind the [schedule](#schedule); the wording is generic to the insurer's product, while the schedule is specific to the placement. Most UK PI insurers publish proprietary wordings, sometimes with multiple sector-specific variants (one for architects, one for accountants, one for solicitors and so on). Comparing quotes at renewal requires comparing the wordings, not just the schedules — wording differences between insurers can materially affect cover.

Related guides

About Apex Insurance Brokers — Apex Insurance Brokers Limited is authorised and regulated by the Financial Conduct Authority, FCA firm reference 724952. Registered in England and Wales, Companies House 07014570. This glossary is general information about Professional Indemnity Insurance terminology and is not advice tailored to any individual firm's circumstances. For advice on your own placement please speak to a broker — see our contact page. Last reviewed: May 2026.

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Professional Indemnity Insurance Glossary

Aggregate limit

Any one claim ("AOC")

ARB minimum criteria

Assigned Risks Pool (ARP)

BIPAR / BIBA / FCA distinction

Broker fee

Claims and circumstances information ("CCI")

Claims-made basis

Claims notification clause

Civil liability cover

Collateral warranty

Commission

Contract works extension

Costs in addition (defence costs in addition to the limit)

Costs inside the limit (costs eroding)

Cyber extension / cyber liability interface

Deductible

Deeming clause

Defamation cover

Defence costs

Dishonesty cover (fidelity / employee dishonesty)

Each-and-every claim (E&E)

Employers' Liability interface

Endorsement

Excess

Exclusions

Fair presentation of the risk

Fee income basis

FCA Conduct of Business (ICOBS)

Fidelity cover

Financial Ombudsman Service (FOS)

Hammer clause (consent to settle)

Hard market

Hold harmless / indemnity clauses

Insurance Act 2015

Insured (definition of)

Insurance Premium Tax (IPT)

Layered cover

Limit of indemnity

Loss of documents extension

Material change disclosure

Minimum Terms and Conditions (MTC)

Notification of circumstances

Occurrence basis

Ombudsman

Participating insurer / qualifying insurer

Policy period

Premium

Proposal form

Reinstatement

Retroactive date

RICS Minimum Approved Policy Wording (MAPW)

Run-off cover

Schedule

Single-claim aggregation / one-occurrence wording

SRA Indemnity Insurance Rules

Sub-limit

Terms of Business Agreement (TOBA)

Third-party liability

Warranty

Without prejudice (in claims correspondence)

Wording (policy wording)

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