PI vs Professional Indemnity vs Errors & Omissions
Short answer. PI, professional indemnity and PII all mean the same UK cover. Errors and omissions, or E&O, is the North American name for it and appears in UK documents mainly where a US parent or a global programme is involved. If a UK contract asks for E&O cover, a compliant UK professional indemnity policy is normally what is being requested — but confirm the required limit and basis.
PI, Professional Indemnity and Errors & Omissions are often used interchangeably — but the term choice matters at renewal, in contracts, and in claims.
The terms, unpicked
Professional Indemnity (PI) — the UK term. Covers professional advisers for negligence claims arising from professional work.
Errors & Omissions (E&O) — the US term. Broadly equivalent to PI, though wording differs.
PI is Professional Indemnity — not to be confused with 'Public Indemnity' which is a non-standard shorthand.
Where the wording differs
- PI (UK): fair-presentation duty under Insurance Act 2015.
- E&O (US): different disclosure standards; state-specific.
- PI (UK): typically claims-made-and-notified basis.
- E&O (US): often occurrence basis with US-specific extensions.
- PI (UK): SRA MTC and other minimum-terms frameworks apply.
- E&O (US): state-by-state regulation, no equivalent minimum-terms.
Published minimum PI requirements by UK regulator or professional body
Whatever a policy is called, UK regulators publish their requirements in terms of limit, basis and run-off, as below.
| Regulator / body | Minimum limit of indemnity | Basis | Run-off required | Excess cap |
|---|---|---|---|---|
| SRA (solicitors) | £3m for a relevant recognised body or relevant licensed body; £2m in all other cases | Any one claim; no monetary limit on defence costs | Six years after cessation | Not fixed in the Minimum Terms |
| ICAEW (chartered accountants) | £2m; or 2.5 × gross fee income (minimum £250,000) where gross fee income is under £800,000 | Any single claim and in the aggregate | At least two years, then all reasonable steps for a further four | Aggregate excess capped at the higher of £3,000 or 3% of gross fee income |
| ACCA | Total income under £600,000: greater of 2.5 × relevant total income or £100,000. Total income £600,000 or more: at least £1.5m | Per ACCA Global Practising Regulations | Not published as a fixed period in this source | Uninsured excess restricted to £20,000 per principal |
| AAT (licensed members) | Sole traders: greater of 2.5 × gross fee income or £50,000. Partnerships and limited companies: greater of 2.5 × gross fee income or £100,000. Maximum required cover £1m where gross fee income exceeds £400,000 | Full civil liability, fully retroactive | Not published as a fixed period in this source | Set at a level the member can meet at all times |
| RICS (chartered surveyors) | Turnover £100,000 or less: £250,000. £100,001–£200,000: £500,000. £200,001 and above: £1m | Each and every claim (or aggregate plus unlimited round-the-clock reinstatement); defence costs in addition to the limit | Six years; consumer run-off £1m in all for six years | Greater of 2.5% of the sum insured or £10,000, for limits up to £10m |
| ARB (architects) | £250,000 | Each and every claim, except fire safety, cladding, asbestos and pollution which may be aggregate | Six years, or five years in Scotland, at the same level as the last year before cessation | Not published |
| FCA — insurance intermediaries (MIPRU 3.2) | €1,300,380 for a single claim; in aggregate the higher of €1,924,560 or 10% of annual income, capped at £30m | Per year | Not set in MIPRU 3.2 | Higher of £2,500 or 1.5% of annual income (no client money); higher of £5,000 or 3% (client money held) |
| FCA — IDD insurance intermediaries (IPRU-INV 13.1) | Relevant income up to £3m: at least £500,000 single claim and aggregate. Relevant income over £3m: at least £650,000 single claim | Per policy | Not set in IPRU-INV 13.1 | Excess over £5,000 requires additional capital resources |
Sources: SRA Minimum Terms and Conditions (sra.org.uk); ICAEW PII Regulations effective 1 September 2024, regs 3.2, 3.3, 3.7 (icaew.com); ACCA Professional Indemnity Insurance Regulations (accaglobal.com); AAT professional indemnity insurance requirements (aat.org.uk); RICS Professional indemnity insurance requirements, UK and Republic of Ireland, 2 July 2025 (rics.org); ARB PII Guidance (arb.org.uk); FCA MIPRU 3.2 (handbook.fca.org.uk) and IPRU-INV 13.1 (handbook.fca.org.uk). Figures are the published minimums at the date shown on each source and are not advice; check your own body’s current rules.
When the distinction matters
US-linked contracts often ask for 'E&O' cover. UK PI usually satisfies this — but wording checks matter.
Multinational placements need clarity on which policy responds to which claim in which jurisdiction.
US regulator or public-body work usually requires E&O-badged cover.
For firms working cross-Atlantic, layered programmes are common.
What UK firms should ask for
- PI — the UK term. Wording under English law, Insurance Act 2015 disclosure duties.
- E&O extension — where US clients are involved, add wording clarity.
- Cross-border placement discussion where applicable.
- Named-jurisdiction clauses to avoid ambiguity.
Frequently asked
Are PI and E&O the same thing?
Can UK PI satisfy a US E&O requirement?
Do I need both?
What if my client says 'E&O' but I only have PI?
Are premiums different?
Does 'malpractice' insurance mean PI?
Related
- Cross-border PI for UK professionals
- PI vs E&O terminology
- Directors' duties Companies Act 2006
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