What is a sub-limit on a professional indemnity policy?

Reviewed by Apex Insurance Brokers · Last reviewed 2026-08-05

When you buy professional indemnity (PI) insurance, the number you tend to remember is the headline limit of indemnity — say £1m, £2m or £5m. But that single figure rarely tells the whole story. Buried in the policy schedule and wording are sub-limits: lower caps that apply to particular covers or heads of loss. Miss them, and you can be underinsured for exactly the exposure you thought you had bought.

This page explains what a sub-limit is, why insurers use them, and — most importantly — how to read your own schedule so you know precisely what you are covered for.

A sub-limit is a cap below the main limit

Your limit of indemnity is the maximum the insurer will pay for a covered claim (or in aggregate, depending on the basis). A sub-limit is a lower ceiling that applies to a defined part of that cover. It does not sit on top of the main limit — it carves out a smaller allowance within it.

For example, a policy with a £2m limit of indemnity might include a £100,000 sub-limit for loss of documents, or a £250,000 sub-limit for fidelity (dishonesty of employees). If a fidelity claim comes in at £400,000, the insurer pays up to the £250,000 sub-limit — not the full £2m — and the balance is yours to fund.

Why insurers apply sub-limits

Sub-limits are a normal underwriting tool, not a trap. Insurers use them to:

• Contain volatile exposures — covers such as fidelity, cyber add-ons or regulatory investigations can be hard to price, so the insurer caps them.
• Offer extensions affordably — a sub-limit lets an insurer include a useful extra (say, court attendance costs) without pricing it as though every policyholder had the full limit exposed.
• Reflect the risk profile — a sub-limit may be tailored to your discipline, turnover or claims history.

The trade-off is clarity: you need to know which covers are capped, and at what level, before you rely on them.

Common covers that carry a sub-limit

The exact list depends on your wording and profession, but sub-limits commonly attach to items like these. The figures below are illustrative only — always check your own schedule.

How to read your schedule

Your policy schedule is the document that personalises the standard wording to you. To find your sub-limits, work through it in this order:

1. Locate the limit of indemnity. Note the amount and whether it is each claim or in the aggregate (the total for the whole policy period).
2. Scan for the word “sub-limit” and any lower figures. Extensions and named covers often list their own cap in a separate column or clause.
3. Check whether costs are “in addition to” or “inclusive of” the limit. If defence costs are inclusive, they erode the limit available to pay the claim itself.
4. Read the extensions section of the wording. Schedules cross-refer to clauses; the sub-limit may be stated there rather than on the schedule’s front page.
5. Confirm the excess (deductible) for each cover. A sub-limit tells you the ceiling; the excess tells you the floor you pay before cover responds.

If any of these are unclear, that is a signal to ask your broker rather than assume. Two policies with the same £1m headline can leave you very differently protected once sub-limits, aggregation and costs treatment are taken into account.

Sub-limit vs. limit of indemnity vs. excess

These three terms are easy to blur, so it helps to see them side by side:

• Limit of indemnity — the overall maximum the insurer pays for a covered claim.
• Sub-limit — a smaller maximum for a specific cover, sitting within the overall limit.
• Excess — the first amount of each claim you pay yourself before cover applies.

A useful way to picture it: the limit is the size of the pot, the sub-limit is a smaller cup that certain claims must be paid from, and the excess is what you contribute before either responds.

Why sub-limits matter for professionals

Many UK professions must hold minimum PI cover under their regulator’s rules — solicitors under the SRA, accountants under bodies such as the ICAEW or ACCA, and others under their own scheme requirements. Those minimums usually refer to the limit of indemnity. A generous headline limit that hides a low sub-limit on the exposure most likely to hit you could still leave you short in practice, and potentially out of step with what a regulator or client contract expects.

That is why reviewing sub-limits — not just the headline number — is part of buying PI properly. If your contracts, regulator or client base put weight on a particular exposure, that is the cover to check the cap on. Ask us to review your current schedule if you are unsure.

Common questions

Does a sub-limit add to my overall limit of indemnity?

No. A sub-limit is part of the overall limit, not extra cover on top. It caps how much the insurer will pay for that specific item, and any payment still counts towards the main limit where the policy is written on an aggregate basis.

Where do I find my sub-limits?

Look on your policy schedule first — often in a table of extensions or a dedicated column — then cross-check the extensions section of the policy wording, which usually states the cap for each named cover.

Can a sub-limit be increased?

Sometimes. Depending on the insurer, your profession and claims history, a broker may be able to negotiate a higher sub-limit or arrange it as a rated extension. It is worth asking if a capped cover is important to your business.

Apex Insurance Brokers Limited is authorised and regulated by the Financial Conduct Authority (FRN 724952). This guide is general information, not advice on a specific policy or a substitute for your policy wording.