Going independent · PI

PI insurance when going independent — UK 2026

Reviewed by Apex Insurance Brokers · Published 15 July 2026

Setting up on your own as a professional? PI is one of the first things clients ask about and the first thing regulators check. Get the retroactive date right and the rest is manageable.

What you need on day one

PI in place before starting any regulated activity — SRA, ARB, ICAEW, RICS, FCA all require it.

Retroactive date — ideally set to the earliest advice you'll be responsible for. Not just the policy inception date.

Certificate of currency in a shareable format for corporate client due diligence.

Understanding of what your prior employer's PI covers and doesn't cover for work you did while employed.

The retroactive-date discipline

Prior work under previous employer: usually covered by their PI (claims-made basis). Confirm in writing.
New advisory work: covered by your new policy from inception onwards.
Retroactive date backdating: rarely available — usually policy inception is the practical retroactive date for new business.
Grey areas: work handed over mid-engagement, or where advice began under previous employer. Broker involvement matters.

First-year premium considerations

New businesses often see loading factors in the first year — less information for underwriters to price on.

Some insurers offer first-year discounts on regulated professionals (typically 10-20%).

Cover-level discipline matters more than price — under-insuring in year one is a common mistake.

Multiple year commitments may reduce total cost but restrict flexibility.

What to arrange with the broker

Cover in place before start date.
Retroactive date documented and agreed.
Regulator notified where required (e.g., SRA change of practice).
Certificate delivered to any waiting corporate clients.
Renewal calendar set for year two review.

Frequently asked

How much notice do I need to arrange PI when going independent?

Two to four weeks is comfortable for standard placements. Complex risks or difficult profiles need longer.

What does my old employer's PI still cover?

Usually claims-made cover for work done during your employment. Confirm in writing before leaving.

Do I need higher cover as an independent than I did as employed?

Usually not immediately — but if you're serving smaller clients now, contract-required limits may still be substantial.

What if I take clients with me?

The prior firm's cover usually covers work done under their name. Your new cover picks up from your inception date — broker involvement matters.

Should I set up as sole trader, Ltd, or LLP?

Structure choice is tax and liability question. PI cover works for any structure but wording is specific to entity.

What about a career gap between roles?

See our page on career gaps — retroactive date discipline matters for gap periods.

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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.