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Professional indemnity explained
PI requirements for public sector frameworks are the professional indemnity limits, basis, duration and evidence that suppliers must meet under a framework or its call-off contract. They matter because a mismatch between the contract and your policy can put you in breach, or leave you underinsured, on work you have already won.
Part of: Professional indemnity insurance
In short
Crown Commercial Service frameworks such as G-Cloud set insurance requirements in the call-off contract or an insurance schedule. A G-Cloud 14 call-off contract published on Contracts Finder requires professional indemnity of at least 1 million pounds for each individual claim and employer's liability of at least 5 million pounds, held for six years after the contract ends, with broker verification on request. Other CCS frameworks set higher figures. Under the Procurement Act 2023, in force since 24 February 2025, buyers cannot require contract insurance to be in place before award, but you must be able to put it in place and evidence it when the contract starts.
Most central government frameworks expect suppliers of professional and digital services to hold professional indemnity insurance at a stated minimum limit, keep it for a period after the contract ends, and prove it on request. The exact numbers depend on the framework and sometimes on the buyer, who can ask for higher limits at call-off. Always read the current framework documents rather than relying on the last iteration, because requirements change.
For IT suppliers, the requirement sits alongside cyber and technology risk. See our IT consultants PI guide and technology professional indemnity for how cover is usually built.
Two published documents illustrate the range. The table summarises their insurance terms; it is not a substitute for reading the version that applies to your contract.
| Term | G-Cloud 14 call-off contract (as published) | CCS Joint Schedule 3, framework RM6263 |
|---|---|---|
| Professional indemnity | At least 1 million pounds for each individual claim, or higher if the buyer requires | At least 5 million pounds |
| Employer's liability | At least 5 million pounds, or higher if required by law | At least 5 million pounds |
| Public and products liability | Sub-contractors at least 1 million pounds, with an indemnity to principals clause | At least 5 million pounds, with an indemnity to principals |
| Limit basis | Each individual claim | A single event or series of related events and in the aggregate |
| Duration | During the contract and for 6 years after it ends | Contract period and at least 6 years after the end date |
| Evidence | Broker's verification of insurance and premium receipts on request | At the start date and within 15 working days after each renewal |
| Cancellation | Notify CCS and the buyer as soon as possible | Notify at least 5 working days before cancellation or non-renewal |
Sources: a G-Cloud 14 call-off contract on Contracts Finder and CCS Joint Schedule 3 for RM6263. Digital Outcomes and other CCS frameworks carry their own schedules, so check the one you are bidding for.
The Procurement Act 2023 took effect on 24 February 2025, according to the government's short guide for suppliers. Procurements started under the previous rules generally continue under them, so a framework let before that date keeps its own terms.
For insurance, the key provision is section 22 on conditions of participation. Conditions must be proportionate to the nature, complexity and cost of the contract. A financial capacity condition may not require insurance relating to the performance of the contract to be in place before award. A condition may require evidence that can be verified by someone other than the supplier.
In practice, that means you can usually bid with a confirmation that you will obtain the required cover, but you must be ready to evidence it at contract start. A broker's letter or certificate is the normal form. See what clients can ask to see on a PI certificate.
A five-person software consultancy holds 1 million pounds of PI on an aggregate basis. The G-Cloud call-off asks for 1 million pounds for each individual claim. Two claims in one policy year would share a single million under an aggregate policy, so the cover does not match the wording. Moving to an each and every claim basis, or confirming the buyer accepts the difference, resolves it. See aggregation of claims.
A department buying through a framework asks for 5 million pounds of PI because the service handles sensitive data. The supplier's 2 million pound policy is not enough. An excess layer, or a higher primary limit, may be arranged for the contract period and six years after. See choosing a PI limit.
A supplier uses a freelance developer who holds no insurance. The call-off requires sub-contractors to carry public and products liability and expects consultants to hold PI. The supplier must either ensure the freelancer is covered or check that its own policy extends to work done on its behalf.
More on core cover is on the professional indemnity insurance page. Apex arranges professional indemnity for IT and consultancy suppliers to the public sector; a broker reads every enquiry.
A G-Cloud 14 call-off contract published on Contracts Finder requires at least 1 million pounds of PI for each individual claim, or more if the buyer asks, held for six years after the contract ends. Always check the version of the framework and call-off you are bidding under.
Under section 22 of the Procurement Act 2023, a contracting authority cannot require insurance relating to the performance of the contract to be in place before award. You should be ready to obtain it and provide evidence when the contract starts, typically a broker's letter or certificate.
It means the full limit should be available for every separate claim, not shared across all claims in the policy year. An aggregate policy may not meet that wording, so check your limit basis with your broker before you sign.
Often yes. The published G-Cloud 14 call-off requires sub-contractors to hold public and products liability and expects consultants and agents to hold PI. Supplier policies may cover work done on their behalf, but check with your broker and keep evidence of sub-contractor cover.
Many CCS documents require cover for six years after the contract ends. Because PI is claims-made, you need to renew each year or buy run-off if you stop trading, so that a claim made in that period is covered.
Tell us what your business does, your turnover and any claims. A broker reads every enquiry and comes back with options. No fee for a quote. Or call 0117 325 0027.
Get a PI quote Request a callbackApex Insurance Brokers Limited is authorised and regulated by the Financial Conduct Authority. Registered in England and Wales, company number 07014570. This page is general information, not advice on your individual circumstances, and it does not guarantee that cover will be available or on what terms.
